Inclusive Instant Payment System (IIPS) is going to be launched soon. The Governor of Bangladesh Bank said that it will be possible to ensure speedy, easy and affordable digital transactions by connecting mobile wallets, banks and other financial institutions to a single network. Ahsan H Mansur.
In a joint discussion organized by the Policy Research Institute (PRI) and the Gates Foundation on Monday (September 7th) in the capital, Hotel Westin, he said that inter -connectable payment system is essential for the development of the digital economy. When it is introduced, government allowances, subsidies and salaries will reach the people directly and increase transparency.
The governor said that about 3-5 percent of the people in the country are still out of the formal financial system. Not only the service coverage, but also the actual inclusion of people deeply with the financial system. That is why the microcredit sector needs to be technology.
At present, about 20,000 agents are offering banking services, but the loan distribution should be more active, he said.
Emphasizing the involvement of women, the governor said that at least 5 percent of agents should be women, so that financial services can be reached from house to house. At the same time, banks will issue more cards by lifting credit card limitations, which will increase customer benefits and revenue.
He said the limit of Nano Loan in the Mobile Financial Service (MFS) has been raised at Tk 5,000 and it will be extended. However, ‘Bangla QR Code’ is being made compulsory for traders to reduce the use of cash. At present, the demand for cash is increasing at 5 percent every year, so the additional expenditure of the bank sector is around Tk 20,000 crore and the possible revenue loss is more than Tk 1 lakh crore.
He added that preparations are underway to start a digital bank. This time IIPS will be implemented using the tested platform ‘Mozalup’ with the help of the Gates Foundation.
Experts in the discussion said that there are currently more than 20 million MFS accounts in the country, but more than half of the adults are still out of formal financial services. Rural-city discrimination, gender-based interval and service provider’s limited interconnected interconnection have become a major obstacle.
They drew examples of Tanzania, Pakistan and Rwanda, saying that the cost of interconnected payment systems in these countries has decreased, efficiency has increased and the participation of the marginal population has increased.
At the end, four priority goals are set- from global experience to education, formation of a consensus on the inclusive platform for Bangladesh, strengthening policy and regulatory structure for fair competition, formulation of roadmaps for implementing IIPS. This initiative will not only increase financial inclusion, but will also be consistent with the G20 Inter-Round Payment Roadmap and Sustainable Development Goals.
EAR/AMA/MS
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