MFS cash-out charge set at Tk 4 per thousand for workers’ salary

Staff Correspondent | Published: 21:02, Apr 23,2020

 
 

The Bangladesh Bank on Thursday slashed the cash withdrawal (cash-out) charge through mobile financial services to Tk 4 a thousand taka for the export-oriented industries’ workers and staff against their salaries they would receive from the government’s refinance scheme.

A BB circular issued on the day instructed the country’s MFS operators only to follow cost recovery policy and to give subsidy in some cases for the sake of the workers against their salary cash-out through the MFS.

To this end, BB instructed the MFS operators to charge 0.8 per cent against the workers’ or staff’s salary cash-out.

Of the 0.8 per cent cost, the loan distributing banks have been asked to contribute 0.4 per cent and the rest 0.4 per cent would only be applicable to the workers and staff, the BB circular said.

An official of the central bank said that the reduced cash-out charge would be a relief for the workers considering the high transaction charge.

Usually the MFS operators charge between Tk 14.5-18 against cash-out of Tk 1,000.

On March 25, the government announced a Tk 5,000 crore package for the payment of salaries of the workers and staff employed in the export-oriented industries.

Initially, disbursement of wages through bank accounts or MFS accounts was a mandatory. However, the finance ministry relaxed the condition a bit, stating that the industries would have to provide the list of workers along with their MFS or bank accounts when the next tranches would be released.

On Monday, the government released Tk 2,000 crore out of the Tk 5,000 crore refinance scheme.

Meanwhile, the central bank early April asked all the parties concerned including the banks, MFS operators and the industries to open bank accounts or MFS accounts of the workers and staff by April 20 for the disbursement of salaries.

In line with the instruction, around 24 lakh MFS accounts for the workers and staff of export-oriented industries were created for the disbursement of salaries, prompting the central bank to issue a directive in this regard to save workers and staff from high charge shock.

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