DHAKA, March 30, 2022 (BSS) - Former Governor of the central bank Dr Atiur 
Rahman today said 'financial interoperability' is necessary for maximizing 
the benefits of financial inclusion.

"This will infuse dynamism in the economy and growth will be further 
strengthened," he said.

Dr Atiur also noted that due to the rolling out of services like Mobile 
Financial Service (MFS) and agent banking, financial inclusion has been 
simplified in the country.

The former Bangladesh Bank (BB) Governor said this while addressing the 
inaugural session of a training programme titled "Financial Interoperability 
in Bangladesh: Challenges and Way Forward" as the chief guest.

Policy Research Institute (PRI) and the Economic Reporters' Forum (ERF) 
jointly organised the event, held at the ERF auditorium in the capital today 
with ERF vice-president and AFP Bureau Chief Shafiqul Alam in the chair.

ERF General Secretary SM Rashidul Islam gave the welcome address on the 
occasion.

PRI Research Director Dr Abdur Razzaque, Dhaka University Economics 
Department Professor Dr Bazlul H Khondker and Bangladesh Bank executive 
director Debdulal Roy made deliberations in the technical sessions of the 
programme.

Financial interoperability is such a scope which could be utilized later on 
after exchanging information from one system to another system or making 
transactions. It is like the scope for holding direct transaction between the 
clients of two separate MFS companies as well as the scope for transferring 
amount between the clients of two separate banks.

Currently such kind of transaction is being called interconnectivity. 
Although the Bangladesh Bank launched interoperability among the MFS 
companies in October 2020, but it was halted within hours of its launching. 
Since then, the service was not restored.

Dr Atiur said financial interoperability is necessary to adapt with the 
evolving changes adding that measures should be taken so that the common 
people can make transactions in the normal shops through scanning QR codes. 

"There is also a demand for this, but the government will have to develop 
necessary infrastructures in this regard, which also requires investment. The 
Indian government has invested a lot for introducing such system. Bangladesh 
also needs to do the same," he added.

Dr Atiur opined that if the private companies make the investment instead of 
the government, then they would charge the clients against their will. "It 
will create doubt about the sustainability of the system. For this, there is 
a need to make proper allocations in the budget."

He mentioned that interoperability infrastructures in the banking sector are 
also there in the country but now there is a requirement for cross-border 
infrastructures so that the country's people can withdraw necessary amount 
from foreign banks through their cards while going abroad.

Dr Atiur said stimulus can be of two types -- one is cash and another one is 
to devise a simple mechanism so that people can be included in the new system 
for their convenience.

PRI Research Director Dr Razzaque said financial transaction in the country 
would be simple, competitive and innovative once financial interoperability 
is introduced. 
 
"The more innovative capacity of a country is the higher it will gain in its 
economic growth," he added.

Prof Bazlul H Khondker opined that digital financial services have made a 
positive impact on poverty alleviation and on personal savings.

Executive Director of BB Debdulal Roy said whatever transaction and exchange 
of information are taking place in the country's financial sector is not 
interoperability, rather it is interconnection. "Now, time has come for going 
towards interoperability. It will make transactions multidimensional and thus 
boost strength of the economy."