Cenbank plans to spread Bangla QR code across country

The Bangladesh Bank has undertaken a big plan to spread Bangla QR (Quick Response) codes across the country to develop a digital transaction system further with the aim of realising a cashless society.

A senior official of the central bank told TBS that as part of the plan they are currently focusing on facilitating cashless transactions in cattle markets set up for Eid-ul-Azha. A process of opening bank accounts that would enable around 10,000 cattle traders to make cashless transactions at those markets is underway. The central bank has held meetings with 26 banks as well as with cow cattle traders for this purpose.

Eight cattle markets in Dhaka North City Corporation and two markets in Chattogram City will have the facility to make cashless payments by using Bangla QR codes. Separate banks in charge of each of the cattle markets will set up their booths with a point of sale (POS) and ATM machines there. Along with the banks, mobile financial service (MFS) providers bKash and Nagad will set up booths at the cattle markets.

Aside from the cattle markets, the central bank is also going to launch digital payment systems with Bangla QR codes in public universities and hospitals. Dhaka University has already introduced a digital payment system with Bangla QR codes, and all the other public universities will launch such a system gradually. Besides, payment can also be made at Bangabandhu Sheikh Mujib Medical University (BSMMU) hospital using Bangla QR.

The central bank has already initiated a campaign to popularise the QR code in Dhaka city and four other districts – Gazipur, Gopalganj, Natore, and Rangpur.

The central bank official said customers of any bank and MFS institution can make digital payments through Bangla QR code. Even if the payment receiver has an account in a bank or MFS other than the one from which the money was sent, he will get it immediately. Neither the payment maker nor the receiver will incur any additional costs in this case.

Another central bank official said, "Cattle traders told us they face a lot of trouble transporting cash. They often pay Tk20-Tk30 per thousand to send money through courier services.

"Besides, we see in the news that many cattle traders are robbed and killed during the Eid-ul-Azha season. A digital payment system with Bangla QR Code will remove such risks. We got very good reviews from everyone when we launched the service on a small scale in cattle markets last year. Many cattle traders told us their sales increased by 20-30% due to the easy payment method".

Md Motasem Billah, director of the Bangladesh Bank's Payment Systems Department, told TBS, "Many countries have become cashless societies through the introduction of cards. But the economic environment of those countries and ours is different. As we have observed, it is possible to bring big changes in the next few years through Bangla QR."

Fund needed to spread Bangla QR

According to the Bangladesh Bank, Tk7.5 crore will be required to continue the operation of Bangla QR Code system this year, but the central bank has been facing a lack of necessary funds for this project.

Relevant sources said no separate fund has been set up for the marketing and implementation of Bangla QR code. Officials of the concerned department of the central bank said if funds are not received quickly, the development of Bangla QR code will be hampered.

Earlier, in a programme, Bangladesh Bank Governor Abdur Rauf Talukdar said efforts will be made so that 75% of the country's transactions go cashless within the next four years. Bangla QR is vital for a large part of these cashless transactions.

Currently, the central bank has asked the banks to take some money from their CSR fund and spend it on the management of Bangla QR code.

A senior official of the central bank said, "If a QR code is installed in a shop or institution, it needs to be changed after a certain period of time. Besides, there is a cost in the process in which banks receive money and send it to another bank account. For these reasons we need to form a fund as part of our long term plan.

"We are trying to get funds. We have already talked to several donor organisations including the World Bank. Having a fund will make it easier for us to continue the work."

At present, daily transactions using Bangla QR code amounts to around Tk4-5 crore. The central bank has set a target of taking it to at least Tk13 crore by the end of current year.

Md Arfan Ali, former managing director of Bank Asia and Chairman of Zaytoon Business Solutions, told TBS, "The central bank has connected all the banks to the National Payment Switch Bangladesh (NPSB) through a universal Bangla QR code. This is definitely a good initiative.

"To spread it in the villages across Bangladesh, the central bank has to make a lot of efforts including boosting campaigns in this regard."