BB moves to improve cashless transactions

January 07, 2021 Business
Bangladesh Bank yesterday rolled out a great interoperable QR code as a part of its efforts to improve cashless transactions in the united states, particularly found in rural areas.

The uniform digital payment method named 'Bangla QR', will help clients pay their bills for purchased goods and services through any mobile banking application, cellular financial service (MFS) or payment company (PSP).

"This is a great approach taken by the central lender to force cashless transactions in the united states," industry insiders said.

The central bank's initiative came at the same time whenever a growing number of population have started preferring to accomplish transactions digitally because of convenience.

And the pandemic has granted an additional push to cashless deal as persons from all walks of life are increasingly embracing different digital financial payment equipment to avoid profit order to keep the coronavirus at bay. For example, purchase through MFS rose 41 % year-on-year to Tk 53,259 crore in October this past year.

The issuance of bank cards stood at 16.31 lakh by October, up 8.73 % year-on-year, when debit cards grew 8.70 per cent to 2.10 crore.

The brand new digital payment method will begin to gain popularity in the remote area as the central bank relaxed the guidelines for opening personal retail makes up about micro and underprivileged businesses on November 16. Clientele will be motivated to utilize the QR code as well.

For instance, clientele are now permitted to pay store shopping bills through a QR code when there is an agreement between your outlet and the entity that keeps the client account. However, the most recent move will help the accounts holder of any bank, MFS or PSP to make the payment if Bangla QR is usually available at an wall plug, according to a central lender notice.

A quick response (QR) code is a kind of barcode that shops information as some pixels in a square grid and may easily be examine by smartphones.

Clients must scan the code with their smartphones to make payments for goods purchased from the stall.

Some banks and MFS have previously introduced QR codes for the expansion of their businesses nonetheless they will need to replace their existing digital repayment program with Bangla QR by December this season to be able establish the interoperable approach.

"This is a revolutionary measure beyond any doubt," said Md Arfan Ali, managing director of Lender Asia.

Bangladesh Bank had previous introduced personal retail accounts for micro and underprivileged businesses, that will noticeably raise Bangla QR in the rural areas.

Point of product sales (PoS) terminals are actually available at a big number of shops found in urban areas, helping clients purchase merchandise and services through the use of their credit or perhaps debit cards through the device.

But the growing attractiveness of QR codes is slowly and gradually phasing out the PoS terminals.

Bangla QR can help both businesses and clientele make settlements without needing PoS to a large extent. 

Besides, clients can be allowed to pay bills by debiting funds from their respective accounts along with credit rating and debit cards.

The firms, who can submit their trading licence, tax certificate and rent statement, are permitted to open merchant accounts.

The merchant members are usually allowed to set up PoS.

However, micro businesses are not required to supply such paperwork to open their personal retail accounts according to the central bank recommendations issued on November 16.

Instead, they have to control a certificate of their profession from the local public representative for beginning an individual retail account.

If such paperwork from public representatives cannot be managed, banks, MFS suppliers and PSPs must accept certificates from respective professional organisations of the micro businesses.

The personal retail account holders will also be allowed to hold Bangla QR, Ali said.

In almost all of the cases, the tiny businesses are struggling to set up PoS due to the cost of a terminal, which ranges from Tk 20,000 to Tk 25,000 per unit.

Bank Asia has already opened 12,000 personal retail accounts found in the rural areas which is brought beneath the new payment program within this month, he added.

This implies the owners of grocery shops and other diverse businesses that contain opened retail accounts with Bank Asia will be allowed to begin using Bangla QR.

The country's loan providers must add the specifications of Bangla QR to their respective cellular app, which is not a hard task at all, a central bank official said.

Clients can pay a maximum Tk 20,000 per transaction because of their purchased goods and program, the Bangladesh Bank notice said.

Syed Mohammad Kamal, country supervisor of MasterCard Bangladesh, echoed Ali.

"Cashless transactions will be like wildfire in the rural areas as a result of latest initiative considered by the central lender," he said.
Source: Thedaily Star

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