Inclusive Instant Payment System (IIPS) is going to be launched in the country soon. Through this, it will be possible to ensure fast, easy and affordable digital transactions by connecting mobile wallets, banks and other financial institutions to a single network, said the Governor of Bangladesh Bank. Ahsan H. Mansoor.
In a joint discussion organized by the Policy Research Institute (PRI) and the Gates Foundation at Hotel Westin in the capital on Monday (September 15), he said that an interconnected payment system is essential for the development of the digital economy. Once it is launched, government allowances, subsidies and salaries will reach the people directly and transparency will increase.
The governor said that about 35-40 percent of people in the country are still outside the formal financial system. True inclusion is not just coverage of services, but connecting people deeply with the financial system. For this reason, the microcredit sector has to rely on technology.
At present, around 20,000 agents are providing banking services, but they need to be more active in disbursing loans, he said.
Emphasizing the involvement of women, the governor said that at least 50 percent of the agents should be women, so that financial services reach homes. At the same time, deregulation of credit cards will allow banks to issue more cards, which will increase customer convenience and revenue.
He said that the limit of nano loan in Mobile Financial Services (MFS) has been increased to Tk 50 thousand and it will be further increased. However, to reduce the use of cash, ‘Bangla QR Code’ is being made mandatory for traders. Currently, the demand for cash is increasing at the rate of 10 percent every year, resulting in an additional cost to the banking sector of around Tk 20,000 crore and a potential revenue loss of over Tk 1 lakh crore.
He also said that preparations are underway to launch a digital bank. This time IIPS will be implemented using the tested platform ‘Mojaloop’ with the support of Gates Foundation.
Experts in the discussion said that even though there are currently more than 20 crore MFS accounts in the country, more than half of the adults are still out of formal financial services. Rural-urban disparity, gender gap and limited connectivity of service providers are major barriers.
Citing the examples of Tanzania, Pakistan and Rwanda, they said the introduction of interconnectable payment systems in these countries has reduced costs, increased efficiency and increased participation of marginalized groups.
At the end four priority objectives were set – learning from global experience, building consensus on inclusive platform for Bangladesh, strengthening policy and regulatory framework for fair competition, formulation of roadmap for implementation of IIPS. This initiative will not only enhance financial inclusion, but also align with the G20 cross-border payments roadmap and the Sustainable Development Goals, they said.
EAR/AMA/MS
#Mobile #wallets #interbank #financial #institution #transactions #launched