Money transfer between MFS and banks starting next week

Mobile Financial Services (MFS) users will be able to transfer money from one MFS provider to another as Bangladesh Bank will launch interoperability of all kinds of accounts from next Sunday.

Called Binimoy, the interoperable digital transaction platform (IDTP) will also allow people to transfer funds from their bank accounts to MFS, according to a central bank circular.

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People who will be able to transfer money between accounts – MFS and banks – will have to pay a maximum of 0.5 Tk to transfer every 100 Tk to another account.

“We have set the maximum fees for transferring money from one MFS to another. If an MFS wants to charge more, they can,” a senior Bangladesh Bank official said.

Interoperability will begin more than a decade after the launch of MFS in Bangladesh. At present, 13 MFS operators provide services to more than 18 crore account holders who transfer nearly 3,000 crore Tk per day.

The government has taken the initiative to make all bank, MFS and Payment System Provider (PSP) accounts interoperable to allow people to move funds effortlessly within the financial sector in real time and at lower cost.

As the IDTP establishes interoperability between banks, MFS operators and PSPs, it will give a major boost to cashless transactions.

After the launch of Binimoy, people will no longer need to open accounts with each MFS operator to transfer money. An MFS or bank account will suffice, as money can be transferred across MFS platforms and banks.

“It will give great freedom of payment. One can transfer funds or pay at any time to anyone,” the central bank official said.

Initially, three MFS operators – bKash, Rocket and mCash, and a Tallykhata wallet – are expected to join the platform along with 10 banks, namely state-owned Sonali Bank, Islami Bank, Pubali Bank, BRAC Bank, City Bank, Mutual Trust Bank, Eastern Bank, UCBL, Al Arafah Islami Bank and Midland Bank, he added.