BSS, Dhaka :
Former Governor of the central bank Dr Atiur Rahman on Wednesday said ‘financial interoperability’ is necessary for maximizing the benefits of financial inclusion. “This will infuse dynamism in the economy and growth will be further strengthened,” he said.
Dr Atiur also noted that due to the rolling out of services like Mobile Financial Service (MFS) and agent banking, financial inclusion has been simplified in the country. The former Bangladesh Bank (BB) Governor said this while addressing the inaugural session of a training programme titled ‘Financial Interoperability in Bangladesh: Challenges and Way Forward’ as the chief guest. Policy Research Institute (PRI) and the Economic Reporters’ Forum (ERF) jointly organised the event, held at the ERF auditorium in the capital on Wednesday day with ERF vice-president and AFP Bureau Chief Shafiqul Alam in the chair. ERF General Secretary SM Rashidul Islam gave the welcome address on the occasion.PRI Research Director Dr Abdur Razzaque, Dhaka University Economics Department Professor Dr Bazlul H Khondker and Bangladesh Bank executive director Debdulal Roy made deliberations in the technical sessions of the programme.
Financial interoperability is such a scope which could be utilized later on after exchanging information from one system to another system or making transactions. It is like the scope for holding direct transaction between the clients of two separate MFS companies as well as the scope for transferring amount between the clients of two separate banks.
Currently such kind of transaction is being called interconnectivity. Although the Bangladesh Bank launched interoperability among the MFS companies in October 2020, but it was halted within hours of its launching. Since then, the service was not restored.
Dr Atiur said financial interoperability is necessary to adapt with the evolving changes adding that measures should be taken so that the common people can make transactions in the normal shops through scanning QR codes. “There is also a demand for this, but the government will have to develop necessary infrastructures in this regard, which also requires investment. The Indian government has invested a lot for introducing such system. Bangladesh also needs to do the same,” he added.
Dr Atiur opined that if the private companies make the investment instead of the government, then they would charge the clients against their will. “It will create doubt about the sustainability of the system. For this, there is a need to make proper allocations in the budget.”
He mentioned that interoperability infrastructures in the banking sector are also there in the country but now there is a requirement for cross-border infrastructures so that the country’s people can withdraw necessary amount from foreign banks through their cards while going abroad.
Dr Atiur said stimulus can be of two types — one is cash and another one is to devise a simple mechanism so that people can be included in the new system for their convenience.
PRI Research Director Dr Razzaque said financial transaction in the country would be simple, competitive and innovative once financial interoperability is introduced.
