Bangladesh Bank (BB) has unveiled an ambitious national objective to fully digitise all financial transactions by July 2027, marking one of the most significant reforms in the country’s financial history. The initiative aims to unite every major financial institution — banks, mobile financial service (MFS) providers, insurance companies, fintechs, and other regulated entities — under a single, seamless, and interoperable transaction system.
A Milestone Announcement
The announcement came during a high-profile event at The Westin Dhaka, attended by senior policymakers, digital finance specialists, and representatives from international development organisations. At the event, BB signed a formal agreement with the Gates Foundation’s Mojaloop, an open-source digital financial services platform designed to support interoperability and financial inclusion across developing economies.
The partnership will allow Bangladesh to integrate Mojaloop’s proven architecture into a nationwide system that facilitates instant, secure, and cost-effective digital transactions. The forthcoming platform will be known as the Inclusive Instant Payment System (IIPS) — a name that underscores the central bank’s vision of democratising access to digital financial services.
Towards a Cash-Lite Future
Once IIPS becomes operational, the need for cash-outs from mobile wallets — a long-standing bottleneck for millions of users — will be eliminated. Customers will be able to send or receive funds across banks, mobile platforms, and other financial channels without fees, delays, or technical barriers.
Governor Ahsan H. Mansur explained that digitisation is no longer optional. “There is no alternative to moving towards this system in the future,” he declared. “Interoperability is absolutely essential for enhancing transparency, reducing corruption, and strengthening the country’s revenue collection mechanisms.”
He stressed that modernising the financial architecture will reduce systemic inefficiencies, promote innovation, and make financial services more accessible, particularly for rural and low-income populations who rely heavily on MFS providers.
Benefits for the Financial Sector and Economy
Analysts note that this digital transformation will streamline government payments, make business transactions more efficient, and reinforce trust in digital platforms. The initiative is also expected to create new opportunities for fintech innovation, integrating Bangladesh further into the global digital economy.
Key Highlights of the IIPS Initiative
| Category | Details |
|---|---|
| Lead Authority | Bangladesh Bank |
| Technology Partner | Gates Foundation’s Mojaloop |
| Platform Name | Inclusive Instant Payment System (IIPS) |
| Completion Target | July 2027 |
| Institutions Covered | Banks, MFS providers, insurance companies, fintechs, and other financial entities |
| Major Change | Elimination of cash-outs; full cross-platform interoperability |
| Primary Goals | Transparency, reduced corruption, increased revenue, and wider financial inclusion |
With this announcement, Bangladesh positions itself as a regional leader in digital finance. The IIPS is poised to reshape how citizens, businesses, and public institutions handle money — paving the way for a more transparent, efficient, and inclusive financial future.