PM Hasina launches Taka Pay, Bangladesh's first local currency card

Bangladesh government seeks to build a cashless society to reduce corruption, expedite development and ease revenue collection, Prime Minister Sheikh Hasina said while inaugurating the local currency card Taka Pay, the first of its kind in the country.

“When we are able to build a cashless society it will curtail corruption. The development of the country will be expedited and the revenue collection will be eased,” the prime minister said in the inaugurational ceremony of Taka Pay on Wednesday from her official residence, Ganabhaban.

She was connected virtually with the headquarters of Sonali Bank, City Bank and Brac Bank.

Sheikh Hasina said as an independent and sovereign country, Bangladesh’s financial system has to be independent and sovereign to reduce dependency on others.

She emphasized the data security of every holder of the newly introduced debit card.

“I hope that the security system of this network will be well-protected. We have to pay special attention to this. Foolproof firewall has to be there,” she said.

She said the Taka Pay card will be a groundbreaking step for building a cashless society in Bangladesh.

“We will not be dependent on others. We will use our money in our country, we will try to connect this system with other countries. We must not be dependent on any single hard currency,” she said.

The card will be issued by the state-owned Sonali Bank and the privately-owned City Bank and Brac Bank in collaboration with the central bank.

Taka Pay will provide the same service nationally through the use of the National Payment Switch of Bangladesh, an electronic payment platform operated by Bangladesh Bank.

Initially, the card can be used within the country. Later the central bank will introduce a taka-rupee card which can be used for shopping in neighbouring India.

Electronic transfer of taka is done through Visa and Mastercard payment networks of business institutions including banks and other financial institutions.

These entities offer branded payment processing services for credit, debit and prepaid cards. Domestic card Taka Pay will provide the same service, BB sources said.

It can be used abroad once foreign banks and institutions partner with the platform. It will reduce the cost of foreign exchange because foreign companies have to spend a lot of money on service charges.

From the beginning, this card can be used at all ATMs, points of sale and online platforms in the country.

Initially it will be used as a debit card, but in the future Taka Pay credit card will also come.

Magnetic strips are used for the security of this card. But now the new EMV technology with added security has been introduced in all bank cards. Gradually Taka Pay card will also be introduced with EMV technology.

Paris-based consultancy firm developed the card.

Bangladesh’s neighbouring countries also have their currency cards. India has card Rupee, Pakistan Pakpay and Sri Lanka has Lonkapay. Saudi Arabia has Mada.

At the outset, a documentary on Taka Pay was screened.