Bangladesh Bank to launch interoperable payment system with support from Gates Foundation: Governor
The interoperable system would allow instant transfers from mobile wallets, bank accounts, non-bank accounts, or institutional accounts directly to any other account
Bangladesh Bank is set to develop an interoperable payment system with the support of the Gates Foundation, enabling seamless transactions of money, goods, and services anytime, anywhere in the country, Governor Ahsan H Mansur has announced.
The interoperable system would allow instant transfers from mobile wallets, bank accounts, non-bank accounts, or institutional accounts directly to any other account, said the governor today (15 September) while speaking at a discussion titled "Stakeholder Discussion on Interoperable Payment in Bangladesh" organised by the Policy Research Institute (PRI) and the Gates Foundation, a global leader in payment systems.
He acknowledged that previous attempts to launch such a system in Bangladesh had failed, but noted that this time the initiative, being undertaken with the support of the Gates Foundation through the Mojaloop Foundation, was better positioned for success.
Keep updated, follow The Business Standard's Google news channel
"Similar systems have been tested in countries like Pakistan with highly positive results. Those experiences serve as both inspiration and lessons for us," he said.
Currently, services like bKash, Nagad, and various internet banking options are available in Bangladesh, but they remain fragmented.
"We want a unified national payment system through which person-to-person and institution-to-institution transactions can be completed instantly. This will be a game-changer in building a cashless economy," Mansur added.
Reducing costs and risks of cash
The governor also highlighted the enormous cost of maintaining a cash-based economy, stating that Bangladesh spends nearly Tk20,000 crore annually just on cash management. In addition, widespread use of cash fuels corruption, robbery, and illicit transactions.
"With the introduction of a cashless interoperable system, corruption, mugging, and illegal financial dealings will decline significantly. This will strengthen economic growth, enhance revenue collection, and improve public safety," he stressed.
Expressing optimism, Mansur said, "With the cooperation of the Gates Foundation and Mojaloop Foundation, and by using our own internal capacity, Bangladesh Bank will be able to launch an effective interoperable payment system within a short period."
