In a recent press release, Nagad Digital Bank emphasized the importance of the government’s strong stance on promoting cashless transactions. This commitment was reflected in Finance Minister Abul Hassan Mahmood Ali’s proposed budget for FY25, which includes an allocation of Taka 1,36,026 crore for social safety net programs, up from Taka 1,26,272 crore in FY24.
The proposed budget, presented at Jatiya Sangsad, includes plans to bring an additional 9,81,061 individuals under social safety programs in the next fiscal year. Currently, 1,29,000 underprivileged individuals receive allowances under various social protection programs.
Key proposals in the upcoming budget include:
- Increasing disability allowance recipients from 29 lakh to 32,34,000.
- Adding 150,480 new maternity allowance beneficiaries, raising the total to 1,504,800.
- Including an additional 2 lakh elderly allowance beneficiaries, bringing the total to 58,01,000.
- Expanding allowances for widows and deserted women by 2 lakh, totaling 25,75,000.
- Increasing support for Bedes, Hijras, and socially backward communities by approximately 97,000 beneficiaries.
Nagad believes that expanding the number of allowances and beneficiaries will significantly contribute to Bangladesh’s development as a welfare state. As these disbursements are conducted digitally, the process will also promote cashless transactions.
The budget, aimed at building a cashless and smart Bangladesh, has been generally well-received by Nagad. However, the institution noted that more measures could be included to accelerate the nation’s progress. Specifically, Nagad suggested that the government should offer incentives to entrepreneurs to popularize cashless transactions, a point currently missing from the proposed budget.
Tanvir A Mishuk, Founder and CEO of Nagad Ltd., highlighted the critical role digital banks will play in achieving the goal of making 30 percent of the country’s total transactions cashless by 2025, 75 percent by 2027, and fully cashless by 2031. Mishuk proposed that digital banks should receive tax benefits to accelerate this initiative.
The Finance Minister also mentioned the introduction of a credit scoring system utilizing artificial intelligence and machine learning technology. This system will facilitate loan services from digital banks by easily identifying fake and anonymous borrowers, thereby streamlining the loan process for genuine borrowers.
