A consumers' rights group yesterday urged the government to bring down the cash-out charge for mobile banking to a single-digit and enforce significant market power (SMP) policy to enhance competition in the burgeoning industry.    

The Bangladesh Mobile Phone Consumers Association (BMPCA) also called for reducing the value-added tax to 5 per cent from 15 per cent now, ensuring interoperability among the operators and making intra-network transactions free of cost.

The association raised the demands at a discussion styled "Fixing logical charge on mobile banking, charge-free interoperability and users security" at the Dhaka Reporters' Unity, according to a press release. 

Nagad, the financial service arm of the postal department, has brought down the cash-out charge below Tk 10 per Tk 1,000 withdrawal whereas it has been Tk 18.5 since the inception of the MFS industry in Bangladesh a decade ago.

Other operators can follow suit, said Subrata Roy Maitra, the vice-chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC).

The central bank should fix a logical charge through a cost-modelling exercise, he said.

Joining the event through mobile phone, Syed Abul Maksud, a noted columnist and researcher, requested the government to slash the service charge for the benefit of the marginalised people.

Mohammad Azizur Rahman Siddiqui, director for the services division of the BTRC, also called for running a cost-modelling for the charges imposed by the retailers and distributors of the MFS industry.

Sayema Haque Bidisha, a professor of economics at the Dhaka University, joined the discussion through mobile phone. She said the service charge is not logical given the current socio-economic circumstances of the country.

She hoped the central bank would take steps to fix a reasonable rate based on the recommendations of all stakeholders.

"If we can bring down the cost of cash-out charge and all other charges, it will be helpful for the poor people," Bidisha added.

Khaled Mahmood, an associate professor at the Institute of Business Administration at the DU, said there is no alternative to SMP to enhance competition.

Ruhin Hossain Prince, secretary of the Communist Party of Bangladesh, said mobile banking is the reality of today, so the government should ensure that the service can be availed safely and at a lower cost.

He called for ensuring a logical service charge and transparency of all firms running MFS operations.

About Tk 1,300 crore is transacted through MFS providers every day, highlighting the growing popularity of the industry.

Bringing down the service charge to a single-digit is the demand of the hour, and this would also play an essential role in reviving the pandemic-hit economy, said Mohiuddin Ahmed, president of the association, in the statement.

He demanded beefing up security in the industry as customers often lose money because of cheating.  

The association said the telecom regulator had already introduced an SMP policy to ensure fair competition among the mobile phone operators. The decision enhanced competition in the market.

The Bangladesh Bank can introduce a similar policy in the MFS industry, he said.

There are 9.48 crore mobile banking accounts in Bangladesh as of September.

September's MFS transaction amount stood at Tk 49,121 crore, up 18.6 per cent from that one month ago and 38.63 per cent from that one year earlier, data from Bangladesh Bank showed.

Sixteen MFS operators are providing mobile wallet service.

They are bKash of Brac Bank, Nagad, Rocket of Dutch-Bangla Bank, MYCash of Mercantile Bank, Islami Bank mCash, t-cash of Trust Bank, First Pay SureCash of First Security Islami Bank, U Cash of United Commercial Bank, OK Banking of One Bank, Rupali Bank SureCash, TeleCash of Southeast Bank, BCB SureCash of Bangladesh Commerce Bank, Jamuna Bank SureCash, Islamic Wallet of Al-Arafah Islami Bank, Spot Cash of Standard Bank and Meghna Bank Tap n Pay.