Bangladesh Bank (BB) has announced a major step forward in the country’s digital financial transformation, confirming plans to bring all financial institutions—including banks, mobile financial service (MFS) providers, insurance companies, fintech firms, and other related entities—under a single interoperable transaction system by July 2027.
The announcement was made by BB Governor Dr Ahsan H. Mansur during a high-level event held today at The Westin Dhaka, organised by the central bank to formally discuss the future of digital payments and financial transparency in Bangladesh.
A Cashless, Connected Future
Governor Mansur explained that once the interoperable system is fully operational, cash-outs from mobile wallets and other digital platforms will no longer be necessary, as all accounts and financial instruments will be seamlessly connected. This would allow customers to send, receive, or make payments directly across platforms—whether bank accounts, MFS wallets, or other digital payment providers—without the current fragmentation that often increases costs and complexity.
“This shift is not merely a technological upgrade; it is a structural transformation of our entire financial ecosystem,” Mansur said. “There is no alternative to moving towards this system. Interoperability will enhance transparency, reduce opportunities for corruption, and significantly increase government revenue collection.”
Partnership With the Gates Foundation
At the event, Bangladesh Bank signed a landmark agreement with the Gates Foundation’s Mojaloop, an open-source software platform designed to help financial regulators and service providers develop efficient, secure, and inclusive payment systems.
The new platform will be officially known as the Inclusive Instant Payment System (IIPS). It is expected to offer real-time, low-cost transactions accessible to individuals, businesses, and government agencies alike. By leveraging Mojaloop’s globally recognised architecture, Bangladesh aims to build a next-generation national digital payments grid.
Driving Transparency & Financial Inclusion
Financial experts at the event highlighted that an interoperable ecosystem can dramatically widen financial inclusion, especially for rural and low-income populations who rely heavily on mobile money services. The elimination of cash-out fees and the ability to move funds freely between platforms could reduce costs and promote safer digital behaviour.
The initiative is also expected to modernise tax collection, improve audit trails, curb illicit transactions, and create a more resilient financial infrastructure.
Key Details at a Glance
| Feature / Information | Details |
|---|---|
| Target Implementation | July 2027 |
| Lead Authority | Bangladesh Bank |
| Technology Partner | Gates Foundation’s Mojaloop |
| Platform Name | Inclusive Instant Payment System (IIPS) |
| Institutions Covered | Banks, MFS providers, insurance companies, fintechs, and others |
| Major Benefit | No cash-out required; full digital interoperability |
| Key Goals | Transparency, reduced corruption, increased revenue, wider financial inclusion |
Bangladesh’s move toward interoperability places it among the world’s pioneering nations working to unify their financial systems under a central digital infrastructure. Observers at the event described the initiative as a “decisive leap” towards building a cash-lite, transparent, and modern digital economy.
JD