The Financial Express

Interoperable MFS transaction begins from Tuesday on pilot basis

| Updated: October 27, 2020 09:54:48

Lankabangla and Fianancial Express Lankabangla and Fianancial Express
Interoperable MFS transaction begins from Tuesday on pilot basis

Mobile financial service (MFS) providers are going to launch interoperable transactions from Tuesday on a pilot basis.

The service will enable fund transfer between MFS accounts and regular bank accounts, reports UNB.

According to official sources, only four MFS providers, including bKash of Brac Bank, MCash of Islami Bank, U-cash and Al Arafa Islami Bank’s Islamic Wallet, will launch the interoperable service from Tuesday while others will gradually introduce the service.

As per directives issued by the Bangladesh Bank’s Payment System Department on October 22, all MFS providers and banks will have to introduce such interoperable transactions within March 31.

It said the interoperable transaction system will enable the MFS account holders to make ‘live financial transactions’ among them and also with some banks.

Bangladesh Bank said such an initiative was taken in order to reduce the cash transactions by using the National Payment Switch Bangladesh (NPSB).

The central bank also directed the MFS and banks not to introduce any new charges on their customers for the new service.

Only the existing charges will be applicable to the customers, it said adding that the MFS and banks will charge a certain fee to be fixed by BB on the organisation level.

The Bangladesh Bank circular said that in case of P2P money transfer from an MFS to another MFS, the receiving MFS will pay a charge at 0.8 per cent on the total amount to the sending MFS.

In case of transferring money from MFS to banks or banks to MFS, the MFS will pay a charge of 0.45 per cent on the total amount to the concerned bank and it will take place in both the case of sending and receiving money, said the BB circular.


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