Bangladesh Bank has instructed banks, mobile financial services (MFS) companies and payment service-related institutions to form 'Cashless Bangladesh Unit' to reduce the use of cash and increase digital transactions.
On Monday (March 16), the central bank's Payment System Department issued a circular in this regard. It said that this unit should be formed at the head offices of banks, MFS, payment service providers (PSPs) and payment system operators (PSOs).
According to the circular, in the case of banks, the unit will be under the overall supervision of the deputy managing director or an officer of the same level related to payment system activities.
In the case of MFS, PSP and PSO institutions, the unit will be in charge of an officer immediately below the managing director.
In addition, in addition to the unit head, at least four officers in the case of banks and at least two officers in the case of MFS, PSP and PSO institutions must be assigned to this unit.
For communication and coordination with the central bank, the focal point officer of the unit in the case of banks will be the Deputy General Manager or an officer of equivalent level.
On the other hand, in the case of MFS, PSP and PSO institutions, the focal point officer will be an officer two steps below the Managing Director.
In addition, in the case of banks, at least a Senior Principal Officer or an officer of equivalent level will be given the responsibility of collecting data, analyzing and preparing reports. In MFS, PSP and PSO institutions, this responsibility will be held by an officer three steps below the Managing Director.
The circular states that this unit will formulate and implement target-based action plans to increase Bangla QR, point of sales (POS), online and card-based transactions to expand digital payments. In addition, these action plans will have to be reviewed and updated regularly.
The unit will also be responsible for strengthening merchant registration activities on the Bangla QR platform nationwide and supervising customer registration and merchant onboarding activities through the bank's own app at the branch level and preparing reports.
In addition, training programs will be organized to enhance the skills of officials of the concerned institutions, and public awareness campaigns, seminars and campaigns will be conducted on digital transactions including Bangla QR.
The unit will also play a role in ensuring customer protection in digital transactions, resolving complaints, risk management and strengthening internal control systems.
The circular further states that a sector-based supply chain payment model will have to be invented and implemented to build a complete payment ecosystem. In addition, a separate annual report on the progress of the action plan taken under the 'Cashless Bangladesh' initiative will have to be prepared and presented to the board of directors.
The directive also states that the report, along with the minutes of the board meeting, will have to be sent to the relevant department of the central bank by the last working day of March every year.
In addition, the implementation of the 'Cashless Bangladesh' initiative will have to be coordinated with various government and private stakeholders, including the concerned ministries, local administrations, city corporations, municipalities, trade organizations.
The circular states that all banks, MFS, PSP and PSO institutions will have to form a 'Cashless Bangladesh Unit' as per the instructions by March 31, 2026. Information on the formation of the unit will have to be sent to the relevant department of the central bank through a forwarding letter signed by the managing director or chief executive officer.
