Govt advancing financial inclusion to achieve cashless society

Mobile Financial Services (MFS) have revolutionized financial inclusion in the country as the  government is taking significant steps toward creating a smart, cashless society by 2025, said Waseqa Ayesha Khan, state minister for finance.

She was speaking as chief guest at discussion at a city hotel on Tuesday organized by American Chamber of Commerce (AmCham) Bangladesh titled "Driving Financial Inclusion for Smart Bangladesh."

AmCham president Syed Ershad Ahmed opened the discussion while John Fay, commercial counselor at US Embassy in Dhaka, economists Prof Mustafizur  Rahman, chamber leaders, former bureaucrats and academicians were present.

The minister highlighted the governments commitment to building a smart cashless society pointing out  higher allocations for ICT practice and education and other measures to ensure discipline to foster financial inclusion in the country. The new budget includes steps for financial inclusion, she said.

Over the past three years, e-wallets from both local and foreign banks have surged, with significant incentives for new innovations. The Prime Minister has set a target for 30 percent cashless transactions by 2025, with further increases expected thereafter. Bangladeshis are not only resilient but also quick to adapt to new technologies.

She said the banking sector is increasingly adopting cashless services, and Bangladesh Bank has licensed two companies for digital banking, marking significant progress. US companies have long been operating in Bangladesh, contributing to strong partnerships, particularly in fintech, which is transforming the countrys digital landscape.

During an open-floor discussion, the Minister addressed questions about interest rates and the shift towards a cashless society. She noted that interest rates are now market-based, and free flow of the market is leading to positive outcomes, including a 47-month record in remittances.

Innovation hubs are paving the way for a cashless society and the digitalization of taxation systems. With positive progress and support from the private sector, the government is poised to achieving its goals for a smart Bangladesh.

The AmCham president Syed Ershad Ahmed said Bangladesh has made notable progress though the graduation from Least Developed Country (LDC) in 2026 presents significant challenges. The Prime Minister has emphasized the need for reduced management expenses, operational costs, and increased efficiency in the Ready-Made Garment (RMG) sector and other exports to remain competitive.