Bangladesh Bank on Wednesday introduced its first ever national debit card called "TakaPay", aiming to reduce reliance on international cards like Visa and Mastercard, and also minimize the outflow of foreign currency.
Prime Minister Sheikh Hasina launched the card virtually from Ganabhaban with the headquarters of the state-owned Sonali Bank, as well as private banks City Bank and Brac Bank during the launch ceremony.
Initially, these three banks have been given responsibility to issue the TakaPay card in collaboration with the central bank.
However, Brac Bank will provide issuing and acquiring services right from its launch.
Before TakaPay, all payment cards used in Bangladesh were owned by foreign companies.
Banks offered these card services for a fee, with foreign-owned card providers receiving a share of these fees. Additionally, there are extra charges when using a card at another bank's ATM.
While inaugurating the TakaPay Card, the prime minister emphasized the importance of “Digital Bangladesh” in driving the economy forward.
Prime Minister Sheikh Hasina said: “For far too long, we've relied on international card networks for local payments, resulting in a substantial outflow of money. But that era has come to an end as all TakaPay card transactions will now be facilitated through the Bangladesh Bank.”
“Today marks a momentous day for us. We set out to establish a digital Bangladesh back in 2008, and now we've successfully achieved that goal. Our vision for the future is to create a Smart Bangladesh,” she added.
She also said: “The steps we are taking align with our vision for a Smart Bangladesh. Our citizens will become smarter, our economy will grow smarter, and we will develop a smart government system. Our society will transform into a smart one.”
Bangladesh Bank Governor Abdur Rouf Talukder and other senior officials of Bangladesh Bank were also present in the inauguration ceremony.
Bangladesh Bank Executive Director Mezbaul Haque presented different aspects of the national card scheme TakaPay.
About the launch of TakaPay card, Managing Director & CEO of BRAC Bank Selim RF Hussain said: “We, along with the entire nation, are proud of the launch of 'TakaPay' card as this is Bangladesh's first ever very own national card scheme. This card will make the banking sector more equipped and self-reliant regarding technology. It will save costs in transactions for the customers.”
“We think this is a big milestone for the banking sector of Bangladesh, which will take this sector a step towards Smart Bangladesh,” he also said.
Along with Selim RF Hussain, Managing Director of Sonali Bank PLC Md. Afzal Karim, Managing Director & CEO of The City Bank Mashrur Arefin and other officials attended the ceremony virtually.
Currently Indian “ RuPay”, Pakistans “PakPay”, Sri Lanka’s “LankaPay” and Saudi Arabia are serving through the “Mada” national card scheme.
Low-cost TakaPay
TakaPay will provide services nationally through the use of The National Payment Switch of Bangladesh (NPSB) - an electronic payment platform operated by Bangladesh Bank.
So transactions on this card will be safe, secure, reliable and swift. It will also be affordable, convenient and easy to use for the consumers.
Currently, banks are providing various quality debit cards to the customers. Such as Classic, Platinum, Signature (Regular) and Signature Priority.
Now at the end of the year, card users have to pay the lowest Tk150 to Tk300 for a debit card.
It includes 15% VAT. And for credit card holders, banks are charging Tk500 to Tk600 for classic card customers, Tk700 to Tk800 for platinum cards, Tk800 to Tk900 for signature regular and Tk1000 to Tk1500 charging for signature priority customers.
Bankers think that Bangladesh Bank's TakaPay card will reduce not only the bank's operation cost but also customer’s card fee.
Initially, the card can be used within the country. Later the central bank will introduce the Taka-RuPay card which can be used for shopping in neighbouring India.
Initially, the card can be used for domestic ATM withdrawals, POS machines and e-commerce transactions.
Experts said electronic transfer of taka is done through Visa and MasterCard payment networks of business institutions including banks and other financial institutions.
These entities offer branded payment processing services for credit, debit, and prepaid cards. Domestic card 'TakaPay' will provide the same service.
At the inauguration, a video documentary on the TakaPay was screened.
Two freedom fighter customers of Sonali Bank withdrew money from City Bank's ATM using TakaPay Card.
At the event, BRAC Bank customer and woman entrepreneur Nusrat Jahan purchased a bus ticket from paribahan.com through the “Taka-Pay” debit card issued against her BRAC Bank account. The prime minister and the officials present observed the entire transaction process.
