Govt caps MFS’s cash-out charge for back-up funds
The federal government decision to distribute the fund under its social back-up programme through mobile financial services will ensure transparency and get more unbanked people under the formal economic climate, according to industry people.
Within its proceed to release the fund smoothly through the mobile financial service (MFS) providers, the federal government has fixed Tk 7 as the cash-out charge per Tk 1,000 withdrawal for the funds to be disbursed under the social protection programmes, according to a finance ministry circular on Thursday.
Top MFS providers possess welcomed the approach, saying the initiative will widen the digital financial inclusion to a sizable extent.
The appropriate beneficiaries beneath the social back-up programmes should be able to manage their desired funds without any hassle, they said.
The government would bear the uniform cash-out charges for disbursing the funds through the MFS providers.
All ministries and divisions would follow the rate while disbursing the funds, the circular said.
The federal government disburses cash support in the sort of allowances, honorarium, scholarships and stipends. Besides, other programmes provide cash support.
Currently, Bangladesh runs more than 125 social protection programmes through 20 ministries and divisions.
The federal government has allocated Tk 95,570 crore for social protection purposes in the current fiscal year, which is 16.83 % of the whole budget and 3.01 percent of the GDP.
