Govt to make BIN mandatory for MFS merchants

The government is set to make it mandatory for businesses to have a Business Identification Number (BIN) to open merchant accounts with mobile financial services (MFS) providers in the fiscal year 2026-27 national budget.

Under the proposed measure, businesses seeking to open merchant accounts with any MFS provider will be required to submit either a valid BIN or proof of enrolment.

Merchant accounts allow businesses to receive digital payments from customers through platforms such as bKash, Nagad, Rocket and Upay.

“A provision will be incorporated into the Finance Bill 2026 to expandthe value-added tax (VAT) base,” said a finance ministry official familiar with the matter, requesting anonymity.

The proposal is part of a broader set of provisions that would make BINs or enrolment certificates mandatory for a range of business-related services, as an effort to strengthen VAT compliance, expand the formal tax net and improve monitoring of business transactions conducted through digital financial platforms.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to formally propose the measure while presenting the national budget in parliament on June 11.

Officials said the proposal has already received in-principle approval from Prime Minister Tarique Rahman at a high-level meeting.

However, industry insiders criticised the move, warning that it could discourage small businesses from adopting digital payments and slow the country’s transition towards a cashless economy.

“This move may set back the journey towards a cashless society. Many small vendors and marginal merchants are reluctant to enter the formal sector because they fear additional compliance requirements and administrative hassles,” said a market insider, requesting anonymity.

The insider added that making BINs mandatory for merchant accounts could discourage some businesses from using digital payment platforms altogether.

There are currently nearly 10 lakh merchant account holders across the country, according to industry sources.

The finance ministry official said the government may also make BIN registration mandatory in several other areas, including opening and operating current or short-term deposit accounts with banks and non-bank financial institutions, obtaining loans, renewing trade licences, securing memberships in trade bodies, obtaining electricity and gas connections, and registering vehicles in the name of a business.

Officials familiar with the proposal said the requirement is intended to bring more businesses into the formal economy and improve the government’s ability to track commercial activities that currently take place outside the tax system.