The government has launched an account verification system (AVS) through Bangladesh Bank to enhance transparency in public expenditure and prevent financial fraud.

The initiative, part of the government's push to make transactions cashless, aims to reduce customer inconvenience and save Tk 500-600 crore annually by eliminating the need for cheque printing, said Bilquis Jahan Rimi, additional secretary.

The system was introduced on a trial basis on January 26 in four chief accounts and finance offices: the Local Government Division, the Health Services Division, the Public Security Division, and the Primary and Mass Education Ministry.

The AVS will be implemented in all accounting offices nationwide by June 2025, said Rimi, also the national program director of the Strengthening Public Financial Management Program to Enable Service Delivery.

The information was shared at a workshop at the Bangladesh Bank Training Academy in Dhaka's Mirpur, which focused on integrating the iBAS++ system with Bangladesh Bank's systems, piloting AVS, and planning the next implementation phases.

At the event, Md Habibur Rahman, deputy governor of Bangladesh Bank, said AVS would ensure public funds reach intended recipients and enhance financial security by verifying government bank account details.

According to a presentation by Debdulal Roy, executive director of Bangladesh Bank's ICT Department, AVS will offer real-time account validation through automated data exchange between banks and Bangladesh Bank.

The government also plans to automate electronic fund transfer return operations and set a deadline for opening new bank accounts at each fiscal year's end to prevent irregularities, according to the officials concerned.