Interoperable systems enable quick transfers from mobile wallets, bank accounts, non-bank accounts, or institutional accounts to others.
Bangladesh Bank is set to create an interoperable payment system with backing from the Gates Foundation. This initiative, as announced by Governor Ahsan H Mansur, aims to facilitate smooth transactions of money, goods, and services across the country at any time.
During a discussion on September 15, which focused on interoperable payments and was led by the Gates Foundation, Mansur highlighted that earlier attempts to establish such a system in Bangladesh didn’t succeed. However, he feels this new effort, supported by the Moharoupe Foundation, stands a better chance of thriving.
He referenced successful implementations in countries like Pakistan, emphasizing that those experiences can serve as both motivation and guidance for Bangladesh.
Currently, services like Bkash and Nagad exist, along with various internet banking options, but they tend to be disjointed.
“We aim to create a unified national payment system,” Mansur stated, noting it would allow for immediate transactions between individuals and systems alike. He believes this could transform the landscape toward a cashless economy.
The governor also pointed out the high costs associated with a cash-based economy, estimating that Bangladesh incurs about TK20,000 crores yearly on cash management. Moreover, heavy reliance on cash can fuel issues like corruption and theft.
“Implementing cashless interoperable systems can significantly curb corruption and illegal financial activities, thereby fostering economic growth and improving public safety,” he remarked.
Showing optimism, Mansur suggested that with collaboration from the Gates Foundation and leveraging local capabilities, Bangladesh Bank could introduce an effective interoperable payment system in a relatively short timeframe.
