Written by The Banking Post
After a hiccup in the journey of becoming a cashless society riding on payment interoperability, Bangladesh Bank (BB) now plans to fully implement interoperable payment system by July in 2027.
Under the broader objective, the central bank signed a virtual agreement with the Gates Foundation to have its mojaloop open source software to install an inclusive instant payment system (IIPS) that brings affordable, connected digital financial services to anyone with access to a mobile phone.
BB governor Dr. Ahsan H. Mansur disclosed the plan while speaking as a chief guest at a view-exchanging discussion titled “Instant Payment in Bangladesh: Unveiling Inclusion Opportunities” with the stakeholders in implementing the IIPS at a city hotel on Monday.
He said they had attempted interoperable system that did not work very well because of various reasons and it need to be replaced by something that is tasted globally and can be maintained domestically.
Hailing the supports of the Gates Foundation to develop an interoperable payment ecosystem through its mojaloop open source software, the central bank governor said the process should be completed by July, 2027 with bringing in all the stakeholders like banks, mobile financial services, microfinance institutions and payment system operators in the IIPS.
He said the boarder objective is to move towards a cashless or less-cash society and it will make the economy open, transparent and less corruption-prone with increasing the tax potentials significantly.
“It’s not an easy task but we’ve taken the challenge with the support from Gates Foundation,” he said.
As part of the digital transformation move in the payment space, the governor also informed, the banking regulator will issue instruction to the MFIs (microfinance institutions) very shortly, ordering them that any payment by the MFIs should be digital.
“We still have one and a half year in our hands to fully implement it. So, now we have to exploit all the avenues available to us because payment system potential is huge and largely untapped here,” he said.
Earlier on November 1st 2025, the central bank introduced the much-talked about interoperable payment system that allows instant transfers from mobile wallets, bank accounts, non-bank accounts, or institutional accounts directly to any other account. But most of the institutions have not joined in the system.
Among nine participating institutions, a leading MFS literally turned away from the platform on ground of lack of preparedness.
Speaking at the event, managing director and chief executive officer of Mutual Trust Bank (MTB) PLC Syed Mahbubur Rahman said the country will be able to formalise informal economy, which will help vibrate the economy significantly.
“So, we need to handle this efficiently and smartly,” he added.
BB deputy governor Md. Zakir Hossain Chowdhury, chairman of Sonali Bank PLC Mohammad Muslim Chowdhury, director of inclusive financial system (IFS) of Gates Foundation Michael Wiegand, Bangladesh country lead of IFS of the Foundation Snigdha Ali and BB’s payment system director Md. Sharafat Ullah Khan, among others, also spoke at the event.
