Mutual Trust Bank and bKash yesterday jointly launched a service enabling remittance to be sent directly to the account-holders of the mobile financial service provider through the bank's partner exchange houses and money transfer operators abroad.

Funds can be sent round the clock and accessed instantly via 180,000 bKash agents countrywide or stored for interest on savings. bKash has around 30 million customers.

Starting off with eight countries, including Saudi Arabia, the United Arab Emirates, Qatar and Kuwait, the service will be made available in more countries gradually, said bKash officials. State Minister for ICT Zunaid Ahmed Palak inaugurated the service at the Westin hotel in Dhaka. 

He said it would expedite digitalisation in the country and help remittance figures surpass previous records.

The state minister laid importance on reducing transfer costs. "We are moving forward towards becoming a cashless society and the Bangladesh Bank is helping the industry ensure the digitalisation of money flow," said Palak.

Lila Rashid, general manager of the payment systems department of the BB, termed the service a new innovation which is helping bring all the dollars into legal channel.

Transparency is a factor in digital transactions and bKash needs to ensure clarity, she said, urging to give importance on proper scrutiny and strict monitoring of agents.

"Lots of transaction patterns are available and both banks and mobile financial service operators need to ensure security," said the central banker.

Kamal Quadir, CEO of bKash, said the service would boost formal remittances inflow, particularly in the rural and remote areas where the presence of bank branches is limited.

He hoped to encourage more commercial banks to partner with mobile financial service providers to deliver remittance in a more efficient, secure and faster way through vast agent networks.

Anis A Khan, managing director and CEO of MTB, said, "The partnership will help us deliver low-cost remittance service at the doorsteps of our customers. This digital transaction will bring more efficiency in remittance delivery system by cutting cost and travelling time."