Safety net funds: MFS cash-out charge fixed at Tk7 per thousand

The government has set Tk7 as service charge for cashing out every Tk1,000 — to be disbursed through the mobile financial service (MFS) providers among the beneficiaries under the social safety net programmes.

In this regard, the finance ministry issued a circular on Thursday. It says the withdrawal charge has been fixed as part of the government’s move to release the fund smoothly and transparently through MFS providers.

Industry insiders appreciated the government decision saying it will bring more unbanked people under the formal financial system.

Different government ministries and divisions will follow the rate while disbursing the funds, adds the circular.

There are currently more than 125 social protection programmes running under 20 ministries and divisions.

In the ongoing fiscal year, the government has allocated Tk95,570 crore for social protection purposes — the allocation is 16.83% of the total budget.