Bangladesh Bank has set a target to establish a fully interoperable digital transaction system by July 2027, linking banks, Mobile Financial Services (MFS), insurance firms and other financial institutions, said Governor Dr Ahsan H Mansur.
The Governor made the announcement at a programme titled ‘Instant Payment in Bangladesh: Unveiling Inclusion Opportunities’ held at a hotel in Dhaka on Monday.
Addressing the current state of digital payments, the governor admitted that Bangladesh Bank's existing interoperable payment system, launched on November 1, has not been successful so far.
"Although the interoperable system has been launched, it has not been successful because many institutions are not conducting transactions through it," said Dr Mansur.
To overcome this hurdle and accelerate the shift toward a cashless economy, the central bank has signed an agreement with the ‘Gates Foundation’s Mojaloop’ to establish a new Instant Payment Platform. The agreement was virtually signed for security reasons.
Introducing IIPS
The new Mojaloop-based platform will be named the Inclusive Instant Payment System (IIPS).
Governor Mansur highlighted the key feature of the new system: it will eliminate the need for cash-out transactions, facilitating seamless digital transfers across the entire financial ecosystem.
The Governor emphasised the mandatory nature and benefits of this digital transformation, saying, “We must transform our entire transaction ecosystem into a cashless one. Banks, MFS operators, agent banking and financial institutions everyone must be brought under a single channel. The plan is to launch it by July 2027.”
He pointed out that this shift to the IIPS is vital for macroeconomic stability. “In the future, there will be no alternative but to move towards this system. It will increase transparency, reduce corruption, and boost revenue collection.”
