Key Facts for Bangladesh
- Primary real-time rails: Bangladesh Real Time Gross Settlement (BD-RTGS), National Payment Switch Bangladesh (NPSB).
- Typical settlement times: Within 30 minutes for BD-RTGS transactions.
- Common limits: For individuals using the National Payment Switch Bangladesh (NPSB), the maximum is 300,000 taka per transaction and 1,000,000 taka daily.
What “real-time payments” means in Bangladesh
In Bangladesh, “real-time payments” refers to the Bangladesh Real Time Gross Settlement (BD-RTGS) system, which facilitates the instant settlement of high-value, time-critical payments. The system is used by banks, corporations, and individuals for transactions starting at Tk 100,000, with no maximum cap for government or foreign exchange transfers. While there is no explicit statutory definition, the system operates under policies from the Bangladesh Bank, with a formal Payment and Settlement Systems Act in development. The scope includes both domestic and foreign currency transactions across thousands of connected financial institution branches.
The country's central bank, Bangladesh Bank, is the lead regulator and direct operator of the BD-RTGS system via its Payment Systems Department. This centralized model means no subsidiary clearing houses are involved in processing these real-time transactions. While the specific messaging protocol for BD-RTGS is not publicly detailed, the global migration towards the data-rich ISO 20022 standard (industry norm) is a defining feature of modern payment infrastructures, supporting richer data and improved interoperability.
With a 'Next Generation RTGS' project underway to provide 24/7 service, Bangladesh is actively modernizing its payment system to align with the capabilities of leading global peers.
Payment Rail Overview
Bangladesh Real Time Gross Settlement (BD-RTGS)
Launched in October 2015, the Bangladesh Real Time Gross Settlement (BD-RTGS) system is the country's core infrastructure for high-value, time-sensitive payments. It allows banks, corporations, and individuals to transfer large sums starting at Tk 100,000 in both local and foreign currencies, with settlement occurring within 30 minutes. The system connects thousands of financial institution branches, processing payments for everything from interbank settlements to customs duties.
- High-Value Transfers: The system is built for large transactions, with a minimum of Tk 100,000 and no upper limit for many payment types.
- Real-Time Gross Settlement: Payments are processed and settled individually as they occur, typically completing within 30 minutes.
- Multi-Currency Support: The rail handles transactions in both Bangladeshi Taka and foreign currencies, facilitating international trade.
- Broad Network Access: More than 11,231 branches of banks and non-bank financial institutions are connected to the network.
Pros:
- Instant settlement for critical, high-value payments.
- Supports foreign currency transactions.
- No maximum cap on transfer amounts for most transactions.
Cons:
- High minimum transaction amount makes it unsuitable for small retail payments.
- Limited operating hours; not available on weekends or public holidays.
- Not designed for high-frequency, low-value payments.
National Payment Switch Bangladesh (NPSB)
Operational since 2012, the National Payment Switch Bangladesh (NPSB) creates interoperability between the country's banks for various retail payment services. It processes real-time interbank transactions from ATMs, Point of Sale (POS) terminals, and Internet Banking Fund Transfers (IBFT). The system connects a majority of the country's banks, providing a unified network for everyday account and card-based payments.
- Interbank Interoperability: Connects dozens of banks for ATM, POS, and internet banking, allowing customers of one bank to use the services of another.
- Retail Transaction Focus: Caters to everyday payments like ATM cash withdrawals, balance inquiries, and online fund transfers between accounts.
- Defined Transaction Limits: Sets clear caps for individuals and corporations on internet transfers to manage transaction flows.
- Mandatory Security: Requires Two-Factor Authentication (2FA) for all online, e-commerce, and card-not-present transactions to protect users.
Pros:
- Improves convenience by allowing customers to use different banks' ATMs and POS systems.
- Supports both individual and corporate users with specific transaction rules.
- Strong security through mandatory 2FA for online payments.
Cons:
- Not all banks are connected for all services, which limits universal access.
- Transaction limits may be restrictive for some larger payments.
- Full interoperability with Mobile Financial Services (MFS) is still in development.
Limits, Fees, and SLAs
- Limits
- NPSB (Individuals): Up to 300,000 taka per transaction, with a daily cap of 1,000,000 taka across 10 transactions.
- NPSB (Corporates): Up to 500,000 taka per transaction, with a daily cap of 2,500,000 taka across 20 transactions.
- BD-RTGS: A minimum of Tk 100,000 per transfer, with no maximum cap for most transactions.
- R2P Fees
- BD-RTGS transfers incur a flat service fee of Tk 100 per transaction.
- Operating Hours
- BD-RTGS operates on business days, with customer transfers open from 10am to 5pm for local currency.
- Failures & Returns
- Formal dispute management procedures exist for NPSB, and cheque clearing includes defined return cut-off times.
Compliance and Risk
KYC/KYB & AML
Bangladesh's financial system is governed by the Money Laundering Prevention Act, 2012. While specific rules for payment systems are evolving with new legislation, account opening requires legal identification, and the Financial Intelligence Unit provides active oversight against illicit financial activities.
Fraud Controls
The regulatory framework mandates technical safeguards like Two-Factor Authentication for online transactions. The new Payment and Settlement System Bill introduces severe penalties for violations, while the central bank's oversight function actively analyzes systemic risks to prevent fraudulent activity.
Recordkeeping & Audits
Financial institutions are subject to the central bank's oversight, which involves collecting operational and transactional data. This process requires participants to maintain detailed records for monitoring and to facilitate 'Self-Assessments' based on international standards and regulatory compliance.
Lightning Network Integration as a Solution
The Lightning Network is a second layer built on Bitcoin that uses off-chain payment channels for extremely fast, low-cost transactions. While local RTP rails like BD-RTGS are effective for domestic high-value transfers, they operate within national borders. The Lightning Network complements these systems by offering a global settlement layer, connecting otherwise isolated domestic payment infrastructures into a single, interoperable network for international commerce and remittances.
Lightning transactions settle in seconds for fractions of a cent, making micropayments practical. In contrast, Bangladesh's BD-RTGS settles within 30 minutes for a flat Tk 100 fee, restricting its use to large transfers. While BD-RTGS connects over 11,000 domestic branches, the Lightning Network provides access to a worldwide payment system available to anyone with an internet connection, moving beyond geographical and institutional boundaries for true global accessibility.
- Cross-Border Complexity: The network bypasses traditional correspondent banking, removing currency conversion delays and high fees typical of international transfers.
- Operational Constraints: Unlike domestic rails with fixed operating hours and high minimum transaction values, the Lightning Network functions 24/7 and is built for micropayments, supporting new economic activity.
- Scalability for High-Volume Payments: The network is designed to process millions of transactions per second, supporting the high-frequency, low-value payments found in retail or digital content that are impractical on high-value settlement systems.
Exploring the Lightning Network offers a direct route to participating in a truly global, real-time payment economy.
B2B Enterprise Use Cases
- Supplier Payments – A company pays its international suppliers directly over the network, settling invoices in seconds instead of days. Business value: Reduces cross-border transaction costs and strengthens supply chain relationships with prompt payments.
- Merchant Settlement – A retailer accepts customer payments that finalize instantly, completely avoiding multi-day card network settlement cycles. Business value: Provides immediate cash flow and eliminates chargeback fraud risk.
- Treasury Optimization – A corporate treasury moves capital between international subsidiaries 24/7, reacting instantly to funding requirements. Business value: Achieves superior global liquidity management and reduces currency exchange friction.
- Payroll for a Global Workforce – A firm pays its international employees and contractors with immediate, low-cost salary disbursements. Business value: Simplifies global payroll operations and improves satisfaction for a distributed team.
- Streaming Micropayments – A content platform collects fractional payments from users in real time as they consume media. Business value: Introduces new pay-per-second revenue models for digital services and content.
Cross-Border Transactions and Remittances to Bangladesh
Cross-border real-time payments are challenging due to the complexities of connecting different national payment systems—a process known as rail bridging. Each transaction must also navigate specific foreign exchange (FX) paths, which can involve multiple intermediaries and currency conversions. In Bangladesh, these technical hurdles are compounded by strict financial regulations that block digital asset-based payments, forcing reliance on slower, more expensive traditional banking channels and creating significant operational friction for international trade and global remittances.
- India-Bangladesh: This corridor is vital for regional trade, but transactions are restricted to traditional banking channels due to a prohibition on digital assets. This results in slower, more costly B2B payments and remittances compared to modern alternatives.
- Middle East-Bangladesh: A primary channel for personal remittances from expatriate workers. Funds are typically sent through established money transfer operators and banks, which involve standard processing delays and fees for inward foreign remittance.
- North America/Europe-Bangladesh: Payments in this corridor often rely on correspondent banking networks, which can introduce multiple intermediary banks. This adds to both the cost and settlement time for business and personal transfers, limiting international settlement efficiency.
The Lightning Network offers a direct alternative, acting as a global settlement layer that bypasses these complex banking routes. It moves value using Bitcoin, settling international payments in seconds for fractions of a cent, fundamentally solving for both speed and cost.
How Lightspark Makes Integration Easy
Lightspark helps fintechs, digital banks, wallets, and exchanges connect to the Lightning Network by managing its operational complexities. Our platform abstracts away the difficulties of liquidity management and dynamic transaction routing, providing a reliable foundation for your payment services. We offer comprehensive developer tooling for rapid integration and built-in compliance frameworks to address regulatory requirements. This allows you to offer your customers sub-second settlement globally for cross-border payments, opening new markets for your business. If you are ready to build on a global, real-time payment infrastructure, Talk to our team.
Sources and Further Reading
- about.hsbc.com.bd – HSBC report on payment trends.
- bb.org.bd – Bangladesh Bank payment systems overview.
- bdnews24.com – Next Generation RTGS project news.
- bis.org – BIS report on cross-border payments.
- lightspark.com/contact – Contact the Lightspark sales team.
- lightspark.com/knowledge/is-crypto-legal-in-bangladesh – Legality of crypto in Bangladesh.
- lightspark.com/knowledge/what-does-the-lightning-network-do – Explains the Lightning Network's function.
- lightspark.com/news/insights/what-are-lightning-payments – Introduction to Lightning Network payments.
- tbsnews.net – HSBC's view on payment trends.
