The Policy Research Institute of Bangladesh (PRI), with support from the Gates Foundation, has launched a research initiative to explore how an Inclusive Instant Payment System (IIPS) could lower remittance costs and promote formal financial channels. The initiative aims to create an interoperable, affordable, and accessible payment ecosystem connecting banks, mobile financial service providers, and other financial institutions.
FAQs
What is the Inclusive Instant Payment System (IIPS)?
The IIPS is an initiative aimed at creating an interoperable digital payment ecosystem that connects various financial institutions, including banks and mobile financial service providers, to facilitate affordable and accessible payments.
Why is reducing remittance costs important for Bangladesh?
Remittances account for around 6 percent of Bangladesh's GDP. Reducing costs and encouraging the use of formal financial channels can channel these inflows into productive investments and reduce reliance on informal transfer methods.
What are the key components of the research initiative?
The research will assess Bangladesh's payment infrastructure, regulatory framework, market incentives, and user behavior. It will also conduct a survey of Bangladeshi migrants to understand their remittance channel preferences.
What are the expected benefits of the IIPS?
The IIPS is expected to reduce digital payment costs, expand financial inclusion, improve transaction transparency, and enhance the efficiency and competitiveness of Bangladesh's payment ecosystem.
