Reducing cash transactions can curb corruption: Governor

Bangladesh Bank Governor Dr. Ahsan H. Mansur has said that reducing cash transactions will naturally curb corruption and increase transparency and accountability in the financial sector.

He made the remarks on Monday during a discussion on the Instant Payment System, organised jointly by Bangladesh Bank and the Gates Foundation.

At the event, a memorandum of understanding (MoU) was signed between Bangladesh Bank and the Gates Foundation to establish an ‘Inclusive Instant Payment System’.

The governor said that by 2027, all types of financial institutions, including 13 mobile financial services (MFS), digital banking, microcredit providers, insurance companies, and non-banking financial institutions (NBFIs), will be able to conduct transactions among themselves.

Dr. Mansur added that by July 2027, the system will be fully operational. If the entire population of the country is included in this system, transparency in economic transactions will be ensured, tax collection will improve, and corruption will decline.

He further stated that by 2027, all MFS, microcredit institutions, and digital payment systems must be prepared to facilitate seamless and instant transactions.