According to today's statement by Finance Minister AHM Mustafa Kamal, the rate of cash usage is anticipated to drop by 75% over the following four years.
"Steps have been made to establish 'Cashless Bangladesh' by adopting universal Bangla QR, which would bring all merchants, even tiny and marginal dealers, under digital payment. The rate of cash usage is thus anticipated to drop by 75% during the following four years, he added.
The minister said this while placing over Taka 7.61 lakh crore national budget for FY23-24 at Jatiya Sangsad (JS) here.
Kamal said timely adjustments in monetary policy are being made to maintain macroeconomic balances and achieve higher growth.
In order to ensure necessary liquidity in the money market during the COVID-19 crisis, the repo rate was reduced by 100 basis points to 4.75 percent from 5.75 percent in two steps and the reverse repo rate was reduced by 75 basis points to 4.00 percent from 4.75 percent, he added.
Later, he said, repo rate has been increased by 125 basis points from 4.75 percent to present 6.00 percent and reverse repo rate has been revised by 25 basis points to 4.25 percent to mitigate the increasing pressure of demand driven inflation.
This move is contributing to macroeconomic stability. Besides, various steps have been taken to increase credit flow to the productive sector and ensure ease of transactions which is helping to achieve higher growth, he added.
Kamal said investment flow in agriculture and other productive sectors including SMEs has been uninterrupted as banks and other financial institutions have fixed the ceiling on loan interest rates and implemented various incentive packages.
On the other hand, he said, a number of steps to reduce cash out charges and increase transaction limits in the development of the MFS system, payment of workers' wages in the ready-made garment industry, use of MFS accounts in microcredit programmes including social security programme allowances under the G2P system, and expansion of sub-branch and agent banking system have strengthened the inclusive banking system.
JH
