Bangladesh Bank MFS restrictions are tightening Bangladesh’s digital money rails ahead of the February 12, 2026 national polls. The central bank ordered temporary caps on mobile financial services (MFS) and peer-to-peer (P2P) transfers for a 96-hour window, as election-period controls.
What Bangladesh Bank ordered
Bangladesh Bank MFS restrictions take effect from 12:00 a.m. on February 9 and run until 11:59 p.m. on February 12, according to reporting that cites a Bangladesh Bank circular from the Payment Systems Department.
The most market-relevant cap is on P2P transfers via MFS.
Tk 1,000 per P2P transaction during the restriction period.
Up to 10 P2P transactions per day was also reported by multiple outlets summarizing the same circular.
Several reports also described a daily total cap of Tk 10,000 for MFS transfers during the window.
Bangladesh Bank MFS restrictions are paired with constraints on bank-to-bank digital transfers. The Daily Star reported that NPSB transfers would remain suspended for 96 hours from the start of the window, citing the same central bank circular.
What is not covered the same way
Bangladesh Bank MFS restrictions are designed to limit person-to-person velocity rather than shut down commerce. The Business Standard reported that merchant payments and utility bill payments would remain under existing rules. Other local coverage echoed that merchant and utility flows can continue.
That carve-out matters because it preserves day-to-day retail spending channels. Still, households and small traders rely heavily on P2P transfers for informal payments.
Why the central bank is doing this now
Bangladesh Bank MFS restrictions are framed as an election integrity measure. Dhaka Tribune said the controls aim to prevent “misuse” of transactions during the election period, citing the circular’s rationale.
The intent is straightforward. Tight caps can slow last-mile distribution of cash-equivalents, including rapid campaign spending. The policy also reduces the capacity to move large sums quickly through MFS networks.
Operational and macro effects
Bangladesh Bank MFS restrictions can create short, sharp frictions even if the window is only four days.
Retail liquidity and consumer behavior
P2P limits can shift behavior toward cash withdrawals ahead of the window. That can raise ATM demand and agent liquidity stress. It can also increase queueing at high-traffic agents.
Informal payments and small business cashflow
Many micro merchants settle via P2P transfers. A Tk 1,000 cap forces more transactions. It also adds time and failure risk. Even with merchant payments allowed, not every small seller has a merchant account.
Fintech and bank operations
Bangladesh Bank MFS restrictions are an operational stress test for providers. Expect higher call-center load, more failed-payment complaints, and tighter fraud monitoring needs. Service-level performance matters most during elections.
Settlement cycles and corporate planning
The temporary pause on NPSB rails can disrupt time-sensitive transfers between bank accounts. That can affect payroll timing, supplier payments, and interbank liquidity operations.
How this compares with past election controls
Bangladesh has used digital-rail controls during prior election periods. The Daily Star documented past central bank actions that suspended or tightened mobile-banking activity ahead of elections. The current Bangladesh Bank MFS restrictions are more targeted, with caps and carve-outs instead of a full shutdown.
What to watch next
Bangladesh Bank MFS restrictions will be judged by execution and side effects.
Agent cash availability: watch for reports of cash-outs failing or agents running short.
Merchant payment continuity: watch whether providers report stable transaction success rates.
Complaint volumes: spikes can signal user confusion or system strain.
Post-window catch-up: the first 24–48 hours after February 12 can bring backlog and settlement noise.
Bangladesh Bank MFS restrictions are temporary, but their impact is immediate. They can dampen election-week cash-equivalent velocity. They can also raise friction for households and small traders at the worst time.