Bangladesh Bank (BB) has introduced the operating rules for Binimoy, an interoperable digital transaction platform. This move comes nearly two years after the government launched the platform to streamline transactions across mobile financial services (MFS), banks, and payment service providers.

Binimoy facilitates seamless digital transactions involving individuals, businesses, government entities, and financial institutions (FIs). To participate, users must register for a Virtual ID, which resembles an email address in format. For instance, individual users might have IDs like user1@binimoy, while businesses could use biz1@biz.binimoy. Financial institutions and government organizations will have similar structured IDs.

Each Binimoy user is allowed only one Virtual ID, which can link multiple accounts from different financial institutions. This system enhances privacy by preventing the exposure of sensitive personal information such as National ID numbers, phone numbers, or account details. Only the Virtual ID is needed to transfer funds, thereby reducing risks like identity theft and cybercrime.

There are two types of financial institutions within the Binimoy network: direct participants, which have settlement accounts with the central bank, and indirect participants, such as MFS and payment service providers, which do not.

The primary transaction type in Binimoy is Direct Pay, where funds are transferred directly using the recipient’s Virtual ID, with the sender inputting their Binimoy PIN to authorize the transaction. Another feature is Request to Pay (RTP), which allows a user to request funds. The recipient can accept, deny, or ignore the request. If accepted, a Direct Pay transaction is initiated; if denied, the sender is notified that no funds have been transferred. Ignored requests remain pending until they expire.

Additionally, Binimoy supports bulk fund transfers, enabling government and business entities to distribute salaries to employees. The platform validates recipients with their respective financial institutions and sends bulk transfer instructions to credit individual accounts accordingly.

E-commerce payments for merchants can also be set up through Binimoy, broadening its utility in facilitating cashless transactions across the country. The government initially launched Binimoy on November 22, 2022, with the aim of enhancing cashless transactions in an economy heavily dependent on cash.