Bangladesh introduces Binimoy, the long-coveted inter-MFS transaction system

The government aims to transform Bangladesh into a “cashless society,” says Sajeeb Wazed Joy

Starting on Monday, mobile money users will be able to transfer funds from one provider to another, thanks to a newly-introduced system called Binimoy.

For example, a bKash customer will be able to transfer money to another user account registered under Rocket and vice versa.

The new system, which was introduced on Sunday, will also allow MFS users to transfer funds to any local bank accounts and make payments of utility charges via a payment service provider or PSP, according to Md Mezbaul Haque, a director of Bangladesh Bank who highlighted the features of the new system.

Mezbaul confirmed that 11 banks, mobile money companies and PSPs have signed up for the platform.

At the inauguration ceremony, chief guest Sajeeb Wazed Joy, Prime Minister Sheikh Hasina’s ICT affairs adviser, said the aim of introducing the service was to transform Bangladesh into a “cashless society”.

“As part of the government’s digitising public services programme, we aim to establish a cashless society, which I believe will be made possible within the next four years,” he said at the ceremony.

Velwar Ltd, in cooperation with Microsoft Bangladesh and Orion Informatics Ltd, developed the platform.

Bangladesh government’s ICT Division and Bangladesh Bank's Innovation and Entrepreneurship Development Academy programme are in charge of the platform. Velwar is in charge of maintaining the platform.

HOW ‘BINIMOY’ WORKS

The new system, which has been styled as an Interoperable Digital Transaction Platform or IDPT, will facilitate transactions between customers, merchants, PSPs, e-wallets, banks, financial institutions, government agencies and private institutions.

According to Mezbaul, the web-based platform will facilitate integration between bank apps, mobile financial services and payment system providers, which will make all financial transactions cost-effective, simple and transparent.

“In addition, it can be used to pay salaries to employees, send remittances, pay taxes/VAT, pay various utility bills and conduct e-commerce transactions,” he said.

An MFS user needs to register with the IDPT to use the platform.

An online ID will be generated after registration.

To transfer funds or to pay for utilities, users only need to use the ID.

The catch is, however, the MFS or bank account of the recipient or the destination PSP must be registered with the platform to make the transaction happen.

THE CHARGES

To transfer funds from one MFS account to another, the users will be charged Tk 5 for every Tk 1,000 transferred, according to a notice issued by Bangladesh Bank.

Users of MFS services will be charged Tk 10 for transferring every Tk 1,000 from MFS accounts to local bank accounts. It will cost MFS users Tk 5 for Tk 1,000 to make payments via PSP.