DHAKA : Bangladesh Bank (BB) has made the use of Bangla QR code mandatory from July 1 as part of its efforts to reduce cash-based transactions and accelerate the country's transition towards a cashless economy.

BB Deputy Governor Dr. Habibur Rahman today announced the decision while addressing the inaugural ceremony of the "Bangla QR Transaction Campaign" as the special guest at the central bank headquarters in the city. 

He said the Bangla QR initiative was introduced to promote digital payments and reduce dependence on cash. 

Through the system, customers will be able to pay the exact amount without the inconvenience of carrying change or making excess payments, he added. 

The platform will make transactions easier, safer and more secure, he said.

Habibur Rahman noted that digital transactions create a documented record of financial activities, which will help reduce informal economic operations.

As a result, economic activities will become more dynamic, contributing to GDP growth and strengthening the overall economy through greater financial inclusion.

He urged banks and other financial service providers to integrate the Bangla QR facility into their mobile applications to ensure easier access to digital transaction services for ordinary citizens and small businesses.

Speaking at the event, Bangladesh Bank Deputy Governor Kabir Ahmed said wider adoption of Bangla QR would help increase the country's tax-to-GDP ratio as more transactions move to digital platforms. 

This would enhance government revenue collection and support faster implementation of development activities, he added.

He also announced that an interoperable instant payment system (IPS) would be launched next year, enabling instant fund transfers between bank accounts and mobile financial service wallets.

According to Kabir Ahmed, improved digital connectivity and financial infrastructure would boost productivity, lower transaction costs and facilitate quick money transfers during emergencies, reducing social and economic hardships.

He further said that digital transactions leave a traceable footprint, making it easier to monitor the movement of funds and strengthening efforts to prevent money laundering.

Earlier, Bangladesh Bank Deputy Governor Nurun Nahar formally inaugurated the campaign at the central bank headquarters. 

Chairman of the Association of Bankers, Bangladesh (ABB) and Managing Director of City Bank, Masrur Arefin, along with managing directors and chief executives of various banks attended the programmes, among others.