Nagad to disburse 75 percent of social safety net allowances

Nagad, the fastest growing digital financial service of the country, and another mobile financial service provider bKash will disburse government’s allowances under various social safety net programmes among 76.13 lakh beneficiaries out of a total of 88.50 lakh.

In order to pay out the allowances, the government carried out demos in eight unions under eight divisions towards the end of last year.

Based on the demos, the government has decided to give out 75 per cent of the allowances through Nagad.

The beneficiaries who will receive the payment through the network of Nagad come from 40 districts.

In a reflection of the government's trust in Nagad, the MFS operator is being entrusted with distributing three-fourths of the allowances put aside for the poor.

The beneficiaries will not have to spend any additional money to cash out the funds from the government.

The government will pay Tk 7 in cash-out charge to Nagad for every Tk 1,000 withdrawal. Nagad will bear the rest.

Prime Minister Sheikh Hasina on Thursday officially inaugurated the disbursement of 75 percent of the government’s allowances through Nagad, the digital financial service of Bangladesh’s Postal Department.

The program was presided over by the Social Welfare Minister Nuruzzaman Ahmed MP, while state minister Md. Ashraf Ali Khan Khasru was present as special guest.

Prime Minister's Principal Secretary Dr Ahmad Kaikaus moderated the event and secretary of the Social Welfare ministry Mohammad Jainul Bari deliver the welcome speech in the inaugural event.

The government of Bangladesh distributes thousands of crores of taka among the poor and the destitute under the social safety programmes every year.

Under the government to person (G-to-P) method, the government has already disbursed the funds among 12.37 lakh beneficiaries in 77 upazilas under 21 districts through agent banking.  

Posts and Telecommunications Minister Mustafa Jabbar termed the disbursement of the allowances of the social safety net programmes through the mobile financial services, especially Nagad as a prominent example of the digitalization of the financial industry, said a media release.

“Nagad is proof of the deep trust and confidence that the government services have created. Nagad is technologically so efficient that it can deliver all of the government's financial services to the people. I want to thank Nagad for making the government self-sufficient in at least one area," he said.

Nagad Managing Director Tanvir A. Mishuk said, “For us, this is a historic moment. We have always designed all of our services, keeping in mind the country and the people of the country. As a result, we have earned the love of the government and the people in a very short time. We believe that the day is not far off when Nagad will digitalize the whole government allowance distribution system, and the people will also get what they are entitled to receive without any hassles." 

Social Welfare Minister Nuruzzaman Ahmed MP said, “We noticed during the demos on the disbursement of allowances under the social safety net programmes that Nagad’s technology is state-of-the-art and the sphere of its service is wide. Hopefully, the government’s allowances will reach the right persons within the shortest possible time under this process.”   

The government will distribute the allowances under four programmes in the current fiscal year.

The government has set aside Tk 5,885.64 crore in the budget for the four programmes. Under the schemes, Tk 2,940 crore has been allocated for 49 lakh elderlies eligible for old-age allowances.

The allocation for 2.50 lakh widows and destitute women stands at Tk 1,230 crore.

Tk 1,620 crore has been allocated for 18 lakh insolvent people with disabilities. Besides, the government will pay Tk 95.64 crore to 1 lakh physically challenged students as stipends. In total, the government will distribute Tk 5,885.64 crore among 88.50 lakh beneficiaries.