Business Report :
Bangladesh Bank (BB) is preparing to launch a nationwide interoperable payment platform that brings all financial institutions, including banks, mobile financial service (MFS) providers, NBFIs, insurance companies, and other relevant entities and allow people to make instant transactions across banks, mobile financial services, microfinance institutions and insurers through a single system.
The platform, called the Inclusive Instant Payment System (IIPS) where cash-outs will no longer be required, expected to be fully operational by July 2027, said Bangladesh Bank Governor Ahsan H Mansur at an event on Monday.
The governor made these remarks while speaking as the chief guest at an event titled “Instant Payment in Bangladesh: Unveiling Inclusion Opportunities” organized by BB at a hotel in the capital.
“Cashless economy is our future. Through digitization, transparency in transactions will increase, corruption will decrease and government revenue collection will also increase. For this, all institutions need to be brought under the same channel. The new platform, in collaboration with the Gates Foundation, will fulfill that goal.”he expressed.
He also noted that reducing reliance on cash could raise GDP by 2.5 to 5.4 per cent, adding $12 to $25 billion to the economy.
Bangladesh now spends around Tk 20,000 crore a year on printing money, transporting cash and maintaining currency.
The governor said much of that spending will decline once IIPS becomes the main transaction channel.
IIPS will allow everyone, from ordinary consumers to businesses, to make transactions quickly, securely, and at low cost.
At the event, Bangladesh Bank signed a virtual agreement with Gates Foundation-backed Mojaloop to establish a new interoperable transaction platform.
Governor Ahsan H Mansur also opined “Although the current interoperable system has been launched, it has not been successful. Many banks and financial institutions have not yet participated in it. Some of the major mobile financial service providers have not yet joined, resulting in limited usage. We are moving to a more modern and comprehensive platform.”
According to Bangladesh Bank officials, IIPS will act as a common digital rail for all financial institutions.
It will break down the current fragmentation, where payments often stay within individual platforms.
Under the new system, users will be able to transfer money using existing account numbers or simple identifiers such as a mobile number or national ID.
Officials from Bangladesh Bank and commercial banks were also present at the event.
