The inclusion of mobile financial services (MFS) in government allowance disbursement has ensured transparency and accountability, speakers said at a webinar Saturday.
They were addressing the webinar “Disbursement of Government Allowances: Use of Mobile Phone Technology” organised by the Telecom Reporters Network Bangladesh (TRNB).
“The MFS sector has been in the limelight, especially, considering the way they have been enabling financial inclusion,” Posts and Telecommunication Minister Mustafa Jabbar said while speaking at the event.
In the fiscal year 2021-22, the government allocation for the social safety net was Tk108,000 crore, TRNB General Secretary Samir Kumar Dey said.
Social Welfare Minister Nuruzzaman Ahmed said, “We have started to disburse the social safety net funds digitally through companies like Nagad. And now, the rightful beneficiaries in remote places are getting the allowance without any hassle.”
MFS have been playing an important role in disbursing government funds in different sectors, with Nagad leading the way by disbursing 75% of the allowances under the social safety net, Samir said.
“Nagad has helped reduce the cost of disbursement to Tk7 for sending Tk1,000, which was earlier Tk22 for the same amount,” he added.
Nagad Managing Director Tanvir A Mishuk said: “For the first time in the country’s history, we had a refund case of undisbursed government allowance.”
“The false beneficiaries can now be identified and we refunded more than Tk385 crore to the Bangladesh Bank. Even the central bank had to take time to process the refunds as there was no such precedence,” he said.
Although MFS in the country started 12 years ago, the disbursement of public funds started with Nagad, Tanvir said.
Social Services Department Director General Sheikh Rafiqul Islam said one of the key issues was beneficiaries’ eligibility and reaching them. In both cases, digitalisation solved both problems and ensured transparency.
Md Yusuf Ali, Project Director (Additional Secretary) of the Primary Education Stipend Project, said, “When Nagad came, we had to move to electronic fund transfer (EFT), and that made all the difference. So, with EFT, the funds are now being transferred via the Bangladesh Bank and we can see the actual disbursement amount.”
Former Secretary General of Association of Mobile Operators Bangladesh TIM Nurul Kabir said, “With the growth of the MFS, digital inclusion took a big leap forward. In technological advancement, there will always be challenges, but it is very assuring to see that entrepreneurs are coming up with innovative solutions.”
Source: United News of Bangladesh