The financial sector in Bangladesh is continuously growing in response to the evolving needs of the vibrant economy. Rapid expansion of mobile phone users, modernization of payments and financial system based on IT infrastructure, countrywide reach of mobile operators network, availability of internet throughout the country have opened up the opportunities of access to payment and finance for the underserved, unbanked/ under-banked and low income group of population through cost efficient and prompt Mobile Financial Services (MFS.) As of June 30, 2020 total 14 banks and 1 subsidiary of bank have been permitted to provide MFS. Bangladesh Bank permits only bank-led MFS providers to operate in the country.
The
permitted Mobile Financial Services in broad categories are: i. 'Cash-in' to
and 'Cash-out' from MFS
accounts
through agent locations, bank branches, ATM, linked bank account and other
methods determined by BB; ii. Person to Business payments like utility bill
payments, merchant payments, mobile top up, deposits into savings accounts/
schemes with banks, loan repayments to banks/non-bank financial institutions
(NBFIs)/non-governmental organizations microfinance institutions (NGO-MFIs),
insurance premium payments to insurance companies and so forth;
iii.
Business to Person payments like salary disbursements, dividend/refund warrant/
discount payments, etc.
iv.
Person to Person payments (One MFS personal account to another MFS personal
account with the same MFS provider or another MFS provider as well as the
payments from one MFS account to a bank account and vice versa with the same
parent bank or of another bank);
v.
Business to Business payments
like
vendor payments, supply chain management payments, etc;
vi.
Online and e-commerce payments;
vii.
Government to Person payments such as pension payments, old age allowances,
freedom-fighter
allowances,
subsidy payments to farmers and so forth;
viii.
Person to Government payments such as tax, fee, levy payments, toll charge,
fine, etc;
ix.
Disbursement of BDT against inward foreign remittances collected by banks;
x.
Loan disbursements to borrowers, vendor payments, etc; and
xi.
Other payments approved by BB. Table 12.2 shows the present scenerio of MFS
in
Bangladesh and Chart 12.5 shows the market share of different MFS in June 2020.