M. Shamsul Arefin
Managing Director 
NCC Bank

The Daily Star (TDS): How is Bangladesh progressing in its transition to a cashless economy?

M. Shamsul Arefin (MSA): Bangladesh is steadily advancing toward a cashless economy, driven by rapid digitalisation, financial inclusion, and regulatory support.

The accelerated issuance of debit, credit, and prepaid cards has further boosted the adoption of cashless transactions, as people increasingly use POS machines and e-commerce platforms for payments.

The widespread adoption of Mobile Financial Services (MFS), internet banking, and QR-based payments has also played a pivotal role in this paradigm shift. The expansion of the National Payment Switch Bangladesh (NPSB) and interoperability among banks, MFS providers, and payment service providers (PSPs) have significantly enhanced customers' convenience in digital transactions.

Regulatory initiatives from Bangladesh Bank, including financial inclusion policies and cybersecurity frameworks, have further strengthened the digital payment landscape. However, challenges such as digital literacy gaps, cybersecurity risks, and broader adoption among merchants remain key areas of focus to ensure a fully cashless economy.

TDS: What innovative steps has your bank taken to accelerate the shift toward a cashless economy, and how have they impacted customers?

MSA: NCC Bank has undertaken multiple initiatives to drive cashless transactions and enhance digital banking accessibility. To enhance financial flexibility, we have established strategic collaborations with multiple MFS providers, enabling seamless fund transfers between NCC Bank accounts and MFS accounts. This integration is extending financial access for users who rely on both banking and MFS services.

Recognising the potential of QR-based payments, we are working on deploying Bangla QR payment services, enabling customers to make quick, secure, and cost-effective digital payments at merchant points, significantly reducing cash dependency.

Additionally, we are preparing to launch Digital Account Registration for remittance recipients, allowing customers to receive funds digitally without needing a traditional bank account. Other upcoming initiatives include Digital Nano Loans, Digital Account Opening, QR-based cash withdrawals at branches, and Buy Now, Pay Later (BNPL) services, all of which will further strengthen our digital banking ecosystem.

Beyond retail banking, we have developed an end-to-end corporate banking solution to cater to diverse financial needs. Our corporate internet banking platform, NCC ICON, enables businesses to manage transactions seamlessly, ensuring a comprehensive digital banking experience for all customer segments.

TDS: What policy changes or government initiatives do you believe are crucial for making digital transactions more secure, inclusive, and widely adopted?

MSA: Nationwide digital literacy programmes should be introduced to educate individuals and businesses on the benefits and security of digital payments.

Strengthening data protection laws and cybersecurity frameworks will also be critical in mitigating fraud risks and increasing user confidence. Additionally, enhancing interoperability between banks, MFS providers, and fintech companies will create a seamless digital payment ecosystem.

To drive merchant adoption, the government should introduce tax incentives and reduce transaction costs for digital payments, encouraging businesses to embrace cashless transactions.

Furthermore, necessary monitoring and encouragement measures should be in place to ensure the adoption of Bangla QR payments across the country, making digital transactions a preferred choice for both businesses and consumers.

Finally, investment in digital infrastructure, particularly in rural areas, will ensure broader internet penetration, making digital payments more accessible nationwide.