The MFS sector led the country in share of financial transactions during the Covid-19 Pandemic.  Nagad, an MFS provider, has taken the lead in disbursing a variety of government allowances, including Covid-19 financial assistance, stipends, and social safety net programme.  The transparent distribution of these allowances has saved time and reduced system losses, the company’s Founder and  Managing Director Tanvir A Mishuk told the UNB’s Masudul Hoque in an interview. Mishuk shared his thoughts after the post-budget period on the country's economy and Mobile Financial Service (MFS).   UNB: Tell the current situation of the country's MFS industry Mishuk: Undoubtedly, the MFS industry plays a significant role in Bangladesh's sustainable growth. The MFS sector led the country's financial transactions during the Covid-19 Pandemic. Nagad has taken the lead in disbursing a variety of government allowances, including Covid-19 financial assistance, stipends, and social safety net program. The transparent distribution of these allowances has saved time and reduced system losses. Collectively, all operators currently transact an average of Tk 3,500crore on a daily basis. When Nagad entered the market in March 2019, the daily transaction of all operators was roughly Tk 1,000. Needless to say, Nagad has been instrumental in market expansion. All of Nagad's unique innovations, in particular, have pushed users to embrace MFS or mobile financial services. Read: Nagad, Swisscontact team up to enhance financial inclusion of RMG workers UNB: What stage is Bangladesh's economy now in? Mishuk: We are at present, in my opinion, in the best position in Bangladesh's history. The way we have handled the Covid-19 crisis is simply exemplary. Even many developed countries have struggled to deal with this predicament. We constructed Padma Bridge. This bridge will have a significant economic influence not just on Bangladesh but also on a number of neighbouring countries. The forecast indicates that just one bridge will raise our revenue by 1.23 per cent. Followed by the Karnafuli River tunnel,  metro rail, and the elevated expressway. Now, the entire world will witness the progress of the Asian Tigers. UNB: Is financial inclusion satisfactory enough? Mishuk: Obviously, this is where we lagged behind. However, our initiatives have gotten quite advanced. The Global Findex, the latest study led by the World Bank, indicates that 53 per cent of individuals in Bangladesh are included in the financial inclusion umbrella. However, based on the number of bank accounts and credit cards, it is around 20 per cent. The remainder comes solely from MFS. Without a doubt, Nagad plays a crucial role here. To ensure the long-term viability of development, we must enhance financial inclusion and swiftly surpass Nepal, India, and Sri Lanka. Mobile financial services will be the primary vehicle for the government to achieve this objective, rather than the traditional banking system. In this case, Nagad is a model of optimism. In the previous three years alone, our consumer base has grown to almost 6.5 crores. No other business in Bangladesh has gained so many customers so quickly, not even in the banking sector. In the meantime, the daily transaction volume of Nagad has nearly hit one thousand crores. UNB: What are the scopes of work here? Mishuk: According to The Global Findex, the majority of individuals without a banking account own a mobile phone. Therefore, we have the potential to bring these unbanked individuals into the fold. We have not been able to bring 30 million individuals into financial inclusion yet, according to the study. Hence, this is also an opportunity for us to expand the market. In terms of financial inclusion, Sri Lanka, India, and Nepal are ahead of us, but in the majority of instances, we are in the lead. For example - paying the utility bill through MFS makes Bangladesh the most advanced in South Asia, in this area. UNB: How innovative has this industry been in its expansion of services? Mishuk: In recent years, the digitalisation of the financial sector has been ensured. And this has been largely accomplished by Nagad. Previously, it was the local Hundi that had been transformed into a formal transaction. We've introduced an innovation that streamlined the complex procedure of account opening, which is known as D-KYC *167#. Through this innovation, they can simply dial *167# and open a financial account. UNB: How much can MFS operators contribute to GDP? Mishuk: So far, no research has been conducted on the MFS sector's contribution to GDP. However, it is a self-evident fact that if transactions can be accelerated while keeping transparency, the economy can move far more quickly.Additionally, the MFS sector has generated over one million direct and indirect employment.  Mobile phone operators contribute 7.5 per cent to GDP. The contribution of the MFS industry to GDP is, in my opinion, more than that of mobile operators.

Nagad, an arm of Bangladesh Postal Department recently organized an event with Chattagram Metropolitan Police (CMP) to discuss about the customer’s financial security in the mobile financial sector. The event was arranged by the organisation’s External Affairs Division at at CMP’s Multipurpose Hall at Dampara Police Lines . CMP’s Commissioner Mr Saleh Mohammed Tanvir, PPM (Service) graced the event as chief guest. Besides, Additional Police Commissioner of CMP Md. Shamsul Alam and Nagad’s Executive Director Niaz Morshed Elite, Chief External Affairs Officer Lt. Col Md. Kousar Soukat Ali (retd), Head of Stakeholder Management Md. Mahbub Alam, PPM, DIG (retd), Chief Corporate Governance Officer M. Nurul Alam, Chief Public Affairs Officer Mohammad Solaiman and others attended the event. Also read: Nagad offers cashback of up to Tk50 on railway ticket CMP Commissioner Mr Saleh Mohammed Tanvir said, “Through this event, Nagad has changed our perception about the mobile financial services. I hope that all the CMP member will open Nagad account and avail its services.” He also said that from now on CMP will give security to the Nagad distributors financial transactions and the two organisations, will work cooperate to serve the country.  Niaz Morshed Elite, Executive Director of Nagad said, Nagad has played an important role in the financial sector to build Digital Bangladesh and now it will lead in building a developed and smart nation. Also read: ‘Nagad Islamic’ launches hotline numbers for pilgrims The program was moderated by Muhammad Zahidul Islam, Head of Public Communications of Nagad. Nagad recently organized a similar event with Dhaka Metropolitan Police (DMP) to discuss the customer's transactional security in the mobile financial sector. Besides, in collaboration with Bangladesh Police, Nagad has already held numerous seminars, including awareness campaigns among the Nagad Uddokta's on money laundering, terrorism financing and fraudulent and suspicious transactions in various regions of the country. Read BURO partners with Nagad for easier savings, instalment payments

The government will take necessary steps, specifically on financial transactions involving Russian projects though, as of now, it seems okay, the foreign secretary has said. "Things depend on the situation. The situation may turn complicated if there are more sanctions on (Russian) banks or SWIFT, or the big companies,” Masud Bin Momen told reporters at the foreign ministry on Friday.  The US, UK, European Union and G7 countries already imposed harsh sanctions against many Russian banks and oligarchs since Moscow’s attacks on Ukraine. Global payments messaging network SWIFT, meanwhile, asked Bangladesh's banks to suspend transactions with seven Russian lenders.  Asked whether the Rooppur Nuclear Power Plant project will be affected, Masud Momen said it is not clear yet as the sanctions now see initial days. Read:Trying to shift stranded sailors from Ukraine to Romania, says Foreign Secy “We have discussed the impacts. We held meeting with the stakeholders Thursday. We will hold more meetings to assess the impacts,” he said. The FS said the government is also assessing the possible impacts on the exports and imports, the projects where Russia is involved.  “We will soon determine the necessary measures. At this moment, we are not facing any problem. Everything will depend on the situation in the coming days.” Masud said the Russian side is still trying to ascertain who is responsible for the rocket attack on Bangladeshi ship 'Banglar Samriddhi' stranded at a port in war-torn Ukraine. “They have also expressed their deep condolences over the death of a Bangladeshi sailor in the attack. They claimed that they didn't do it," he said. However, it is very difficult to ascertain who is doing what from where and which side in a ‘Fog of War’, he added. But the Russian side has assured Bangladesh of informing Dhaka on what exactly happened. Masud also said efforts are underway to bring 28 crew of Bangladeshi ship "Banglar Samriddhi" to Romania from war-ravaged Ukraine. Asked whether there is any communication with the Ukrainian side, he said Ukraine's priorities are different now. "They are now more engaged in saving the territory. So it may not be possible for them to answer all our questions.” Masud said around 600 Bangladeshis safely left Ukraine and are now in Poland while there are 100 Bangladeshis staying in Ukraine.  Read:Bangladeshi crew in Ukraine: Govt trying to evacuate them to Poland, says Shahriar "However, many of them may have families in Ukraine or have Ukrainian spouses. So, they may not be at risk," he added.  There are some pockets where a few Indians are staying, Bangladesh came to know. Bangladesh has also requested the Indian Mission in Ukraine to help the two or four Bangladeshis if they are there, said the foreign secretary. Stating that the ongoing war between Russia and Ukraine is a matter of concern for the whole world, he said fuel prices have increased the most in ten years in the last few days. “There will be huge pressure on oil, gas and fuel. Inflation is going on the rise in many European countries at the moment. So everyone is still worried about it," he said, adding that war is not desirable for anyone.

Bangladesh Bank will investigate the financial transactions and other e-commerce activities of e-commerce platform Evaly.

Brazil's lower house of congress will not approve the proposed tax on digital financial transactions, Rodrigo Maia, president of the Chamber of Deputies, said on Thursday.