Bangladesh Bank Governor Dr. Ahsan H. Mansur announced on Monday that an integrated inter-institutional transaction system will be fully implemented across all financial institutions in the country by July 2027, marking a transformative step toward a digital and cash-light economy.

Speaking at an event held at The Westin Hotel in Dhaka, Dr. Mansur emphasized that the new system will eliminate the need for cash withdrawals during inter-platform fund transfers, significantly enhancing efficiency, transparency, and financial inclusion.

A landmark agreement was signed between Bangladesh Bank and Mojaloop, an open-source platform developed by the Bill & Melinda Gates Foundation, to establish a national instant payment infrastructure. Due to security protocols, the signing ceremony was conducted virtually.

Under this collaboration, the platform will be locally branded as the Inclusive Instant Payment System (IIPS). It will enable seamless, real-time transactions across banks, mobile financial services (MFS), insurance companies, and non-bank financial institutions, creating a unified and interoperable digital payments ecosystem.

Governor Mansur stressed that digitization is essential for ensuring transparency in financial transactions. “There is no alternative to moving toward integrated digital systems,” he said. “This initiative will not only reduce corruption but also strengthen revenue collection and promote trust in the financial system.”

The IIPS is expected to enable instant, round-the-clock fund transfers across financial platforms, eliminate dependency on cash-in and cash-out cycles for cross-network transactions, enhance the traceability and auditability of financial flows, promote financial inclusion, particularly for underserved and rural populations, and foster innovation and competition in the fintech sector.

By integrating previously siloed financial networks, the system aims to streamline payments, lower transaction costs, and accelerate the nation’s transition to a modern digital economy.

Bangladesh Bank will lead coordination efforts with regulators, financial institutions, and technology providers over the next 18 months to ensure technical readiness, regulatory alignment, and nationwide adoption by the July 2027 deadline.

This initiative reinforces Bangladesh’s commitment to its Digital Bangladesh vision and positions the country as a regional frontrunner in inclusive financial technology.

As Governor Mansur concluded, “The future of finance is interoperable, instant, and inclusive, this system is not just a technological upgrade, it is a national imperative.”