Bangladesh Bank targets fully digital transactions by July 2027

Bangladesh Bank (BB) plans to bring all financial institutions, including banks, mobile financial service (MFS) providers, insurance companies, and other relevant entities, under an interoperable transaction system by July 2027.

Under this system, cash-outs will no longer be required, BB Governor Ahsan H Mansur said today at an event at the Westin Dhaka, organised by BB.

At the event, BB signed an agreement with the Gates Foundation's Mojaloop—an open-source software platform for financial service companies, government regulators, and others—to establish the interoperable transaction platform virtually.

The Mojaloop-based platform will be named the Inclusive Instant Payment System (IIPS).

Mansur said digitisation is essential for ensuring transparency in financial transactions, adding that the interoperable transaction system is crucial to achieving this.

"There is no alternative to moving towards this system in the future. It will enhance transparency, reduce corruption, and increase revenue collection," he added.