New journey of cashless economy with Bangla QR, mandatory for all merchants from July 1

According to financial sector stakeholders, the introduction of Bangla QR will make the digital payment system easier, safer, and more universal. At the same time, it will increase financial inclusion in the country and significantly reduce the use of cash.

Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said that Bangla QR is not a new app or MFS; it is a unified QR code system. As a result, there will be no need to use separate QR codes for different banks or MFS. All types of digital payments can be made from a single QR code.

He said that until now, customers often had to withdraw cash to pay bills because many shops did not have QR codes for specific MFS. The introduction of Bangla QR will remove that limitation. There will be no need to install any new app or software. The relevant service providers will replace their existing QR codes with Bangla QR.

According to Bangladesh Bank, the main goal of this initiative is to bring small transactions under the digital system. Rickshaw pullers, small traders, vegetable sellers, and other local-level businessmen will also be able to easily accept digital payments. This will reduce the shortage of change, the hassle of torn notes, and the risk of carrying cash.

Shamsuddin Haider Dalim, Head of Corporate Communications at bKash, said that the introduction of the unified Bangla QR will expand the country's digital payment ecosystem. Customers will be able to make cashless transactions quickly and hassle-free, and it will also make payment acceptance and account management easier for businesses.

According to Bangladesh Bank data, in April of this year, over 31.78 crore transactions worth approximately Tk 49 lakh crore were made through mobile banking. During the same period, significant digital transactions were completed in various sectors, including utility bills, salaries, credit card bills, and talk time purchases.

Experts believe that the introduction of Bangla QR will further accelerate the volume of digital transactions. This will help increase transparency in transactions, reduce tax evasion and illegal money flow, and boost revenue collection. Additionally, the cost of printing paper notes will also decrease significantly.

Bangladesh Bank issued a circular on this matter on April 1, stating that from July 1, it will be mandatory to have Bangla QR at all merchant points. Failure to comply with the directive may result in a maximum fine of Tk 30 lakh for the concerned bank, payment service provider (PSP), and payment service operator (PSO).

According to the central bank, the first directive for Bangla QR was issued in 2021, and it was made a fully interoperable system in 2023. Currently, most banks and MFS institutions are connected to this system.

The government has set a target of making 75 percent of the country's total transactions cashless by 2027. However, to achieve this goal, stakeholders are emphasizing the need to address several challenges, including limited internet and smartphone usage in rural areas, a lack of digital financial literacy, the risk of cyber fraud, and commission costs for small businesses.