Bangladesh Bank asks authorities to declare MFS as emergency service

Bangladesh Bank today asked concerned authorities to take necessary steps for declaring mobile financial services (MFS) as emergency services amid the ongoing closure following the coronavirus outbreak.

A letter signed by Md. Mahbubul Haque, director general of the central bank, was sent to four secretaries of Home and Finance ministries and Police Headquarters and requested them to take steps in this regard.

Declaring general closure after March 25, the government issued a list of emergency services but MFS services -- which fall under the umbrella of Digital Financial Services (DFS) -- were kept out of it.

"After March 25, daily transactions declined sharply as agents are facing challenges in opening their shops," said Abdul Kashem Md Shirin, managing director of Dutch Bangla Bank, which also operates the Rocket MFS service.

In the meantime, the government has declared financial support packages that are designed to support companies through the upcoming economic crisis, but to avail these packages, all the garments and export oriented factories need to pay their employees' salaries through either bank account or via mobile financial services such as Bkash or Nagad.

Less than half of the 41 lakh garment workers have MFS and others might have to open accounts soon.

Since a huge number of accounts needs to be opened, Bangladesh Bank also requested the authorities' support in this regard.