Dhaka: Bangladesh Bank Governor Dr Ahsan H Mansur announced that the central bank is actively encouraging the use of digital and QR code-based payments across various sectors, including small retail shops, as part of a broader initiative to create a cashless and corruption-free society.
According to United News of Bangladesh, Dr Mansur made these remarks while speaking at the rebranding inauguration of Islami Bank Bangladesh PLC’s mobile financial service, mCash, held in Dhaka. He emphasized that a fully digital payment ecosystem could potentially generate an additional revenue of Tk1.5-2.0 lakh crore for the government. Dr Mansur highlighted the current annual expenditure of Tk20,000 crore incurred by Bangladesh in managing cash, noting that this is one of the highest globally. Transitioning to digital payments, he argued, could substantially reduce these costs.
Governor Mansur expressed confidence in the potential of mCash, pointing out that Islami Bank has approximately 3 crore customer accounts, the largest customer base for any single bank in the country. He underscored the necessity of mobile financial services in expanding the digital payment framework and assured that Bangladesh Bank is committed to ensuring smooth interoperability among these services.
However, the Governor also cautioned that Islami banks must adhere to Shariah principles. He pointed out that some banks, including S. Alam, have encountered risks due to non-compliant lending practices. He revealed that the central bank has completed a draft law aimed at ensuring Shariah-compliant operations.
Additionally, Dr Mansur encouraged mCash to capitalize on Islami Bank’s extensive network, which includes 400 branches, 271 sub-branches, and about 2,800 agent outlets, along with its remittance flows. He stressed the significance of strategic long-term planning, building customer trust, and offering incentives such as cashback to foster wider adoption of digital payments.
Dr Mansur concluded by stating that promoting digital transactions in the retail and SME sectors through QR codes could play a crucial role in reducing corruption and enhancing government revenue. The event was presided over by Professor Dr M Zubaidur Rahman, Chairman of Islami Bank.