Interoperability Between MFS, Banks to Start from January 2022
Published On: 21 Nov 2021, 1:27 pm

The Interoperable Digital Transaction Platform (IDTP), a new system to transfer funds from one MFS to any other MFS, between MFS and banks, and other Payment Service Providers (PSP), is set to be launched in January 2022. Zunaid Ahmed Palak, state minister for ICT, said on Sunday that IDTP will allow effortless fund transfer within the financial sector in real-time and at lower costs.

IDTP is a government initiative aiming at bringing people online by providing digital service. The platform will be governed and operated by Bangladesh Bank. It will act as a connector between different participants of the sector like banks, non-banking financial institutions, merchants and businesses, customers, etc.

Besides fund transfers, IDTP registered clients will also be able to purchase products from stores by scanning the QR (quick response) code. The IDTP will be very secure as clients will have to verify their identity through a two-factor authentication for each transaction.

Atiur Rahman, the former central bank governor, had previously applauded the initiative and stated that interoperability will positively impact the whole financial sector and will help banks understand clients’ nature by analyzing data of interbank MFS transactions.

IDTP is expected to bring Bangladesh even closer to establishing a cashless society. This in turn is expected to minimize a number of issues including money laundering, financial fraud, terrorism financing, etc.