Govt to implement account verification system nationwide by June to prevent fraud

The Bangladesh Bank and the Finance Division have announced that the government will implement the Account Verification System (AVS) nationwide by June to ensure the accuracy of customer accounts as part of its initiative to make government transactions cashless.

Senior officials of both institutions at a workshop revealed that AVS was launched on a trial basis on 26 January, in four Chief Accounts and Finance Offices (CAFOs) – - the Local Government Division, Health Services Division, Public Security Division, and the Ministry of Primary and Mass Education, said a press release today.

The system aims to enhance transparency and accountability in public expenditure while effectively preventing fraud and financial waste, according to participants in a recent workshop.

It was further stated that the AVS will be implemented in all accounting offices across the country by June 2025.

The workshop, held this morning at the Bangladesh Bank Training Academy in Mirpur, focused on integrating the iBAS++ system with Bangladesh Bank's systems, piloting AVS, and formulating an implementation roadmap for the next phases.

It was organised by the iBAS++ scheme of Strengthening Public Financial Management Programme to Enable Service Delivery (SPFMS) under the Finance Division.

Deputy Governor of the central bank Md Habibur Rahman attended the event as the chief guest with Additional Secretary (Budget-1) and National Programme Director of SPFMS Bilquis Jahan Rimi in the chair. 

On the occasion, Deputy Governor of the central bank Md Zakir Hossain Chowdhury and Executive Director of Bangladesh Bank Training Academy Md Hanif Mia were present as special guests.

A presentation on integrating iBAS++ with Bangladesh Bank's systems and the implementation roadmap for AVS was delivered by Executive Director of the BB ICT Department Debdulal Roy while Abul Basar Muhammad Amir Uddin, joint secretary of Finance Division, provided his presentation on the iBAS++ system. 

The event was participated by 90 top officials from various government and private banks, who shared their opinions on the initiative.

In his speech, Md Habibur Rahman stated that the introduction of AVS will make government transactions more seamless and accurate. It will ensure that public funds reach the intended recipients, reducing customer inconvenience. 

Additionally, verifying government bank account details will enhance financial security and prevent irregularities.

Bilquis Jahan Rimi emphasised that the primary objectives of AVS implementation are to transition all government payments to a cashless system, ensure transparency and accountability in expenditure management, prevent fraud and financial waste, and reduce customer hardship. 

She highlighted that AVS will verify bank account details of government institutions and save Taka 500-600 crore annually by eliminating the need for check printing.

According to the presentation, the verification process will be conducted through iBAS++, ensuring real-time account validation through automated data exchange between banks and Bangladesh Bank.

Drawing and Disbursement Officers (DDOs) will complete bill entry, approval, EFT (Electronic Fund Transfer) generation and subsequent actions at the Bangladesh Bank.

It was also revealed that the government plans to fully automate EFT return operations in the future. Moreover, a deadline will be set for opening new bank accounts at the end of each fiscal year to prevent irregularities and complexities.

Measures will also be taken to ensure real-time disbursement of funds to beneficiaries of social safety net programmes via mobile banking.