Bangladesh Bank has ordered banks and payment providers to set up dedicated “Cashless Bangladesh Units” at their head offices to accelerate digital transactions and reduce reliance on cash.
The directive was issued on Monday by the central bank’s Payment Systems Department to the managing directors and chief executive officers of all scheduled banks, mobile financial service providers, payment service providers and payment system operators.
Under the instruction, each institution must establish a dedicated unit responsible for coordinating policies and monitoring progress in expanding digital payments.
In banks, the unit will operate under the supervision of a deputy managing director or an equivalent official. Mobile financial service providers and other payment entities must appoint an officer one step below the managing director to lead their units.
Banks must assign at least four officers in addition to the unit head, while mobile financial services and other payment providers must appoint at least two officers to their units.
The focal point officer for banks will be a deputy general manager or an equivalent official. Non-bank payment entities must appoint an officer two steps below the managing director as the focal point.
Banks must designate a senior principal officer or an equivalent official as the assistant focal point. Other payment entities will appoint an official three steps below the managing director as the assistant focal point.
The units will prepare target-based roadmaps to expand digital payments, increase customer registration and promote proprietary payment applications.
They will also accelerate merchant onboarding for the Bangla QR channel and monitor branch-level customer and merchant activities.
The responsibilities of the units will include staff training, public awareness campaigns, customer protection, complaint resolution, risk management and the implementation of sector-specific supply chain payment models.
Each institution must submit an independent annual progress report and the relevant board meeting minutes to Bangladesh Bank by the last working day of March.
The units will coordinate with the central bank, government ministries, local authorities, city corporations and trade organisations to implement cashless payment initiatives.
The circular said institutions must submit details of their units along with a signed forwarding letter to Bangladesh Bank by March 31.
Any subsequent changes to the personnel or structure of the units must be reported to Bangladesh Bank immediately.
The central bank said the initiative is intended to reduce the use of cash and extend the benefits of digital payments to marginal customers as part of a phased plan to make the national payment system fully cashless, digital and inclusive.
