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Postal Cash Card

POSTAL CASH CARD – RENDERING DIGITAL FINANCIAL SERVICES FOR THE UNBANKED POPULATION THROUGH ENSURING FINANCIAL INCLUSION

 

Bangladesh Post is a service oriented government organization working under Posts and Telecommunications Division, Ministry of Posts, Telecommunications and Information Technology, Government of the People’s Republic of Bangladesh. Bangladesh Post is committed to provide a speedy, reliable postal service to the people of all walks of life at a reasonable cost. Bangladesh Post has been playing an important role in providing access to financial services in rural and remote areas of Bangladesh with its extremely large and far-reaching network of 9,886 post offices. Bangladesh Post embarked on an ambitious drive to develop and provide innovative digital financial services and launched Postal Cash Card. This service was inaugurated by the Honourable Prime Minister Sheikh Hasina on 26 March 2010. It targeted primarily at the unbanked population in rural and remote areas and has already gained considerable success. It is a prepaid card that allows customers to deposit, withdraw and transfer money (Card to Card), make purchases and perform utility bill payments. This card costs only BDT 45 i. e. USD 0.52. Transaction charge is only BDT 5 i. e. USD 0.06. Customers are charged 1% for withdrawals. Different social safety net allowances amounting to BDT 140,02,52,425 i. e. USD 16.28 million are being paid to 2,49,869 person under various projects funded by the United Nations, the UNDP, Ministry of Social Welfare of Bangladesh, Local Government Division of Bangladesh and the World Bank through postal cash card from digital post offices. In 2012, Bangladesh Post has started to establish Co-Branded ATM booths with the collaboration of Sonali Bank Limited. 18,000 Point of Sale (PoS) machines have already been installed. Another 32,000 PoS machines would be installed by 31 December 2019. The story of Bangladesh Post therefore shows that with the right approach, postal operators can innovate successfully, and as a result, make a meaningful contribution to financial inclusion. The business model adopted by Bangladesh Post is offering digital financial services in order to render benefits of financial inclusion to the unbanked population. The ultimate mission is to ensure affordable, secure, quality and international standard digital financial service through adoption of institutional development and state of the art technology that emblems ethical and transparent government services to enhance integrity and social justice.

 

Postal Cash Card is relentlessly playing a crucial role in ensuring deeper financial inclusion by providing digitized banking facilities for rural people specially those staying out of the reach of banking periphery as well as in achieving Goal 1 [End poverty in all its forms everywhere (Identified Targets: 1.4)] and Goal 8 [Promote sustained, inclusive and sustainable economic growth full and productive employment and decent work for all (Identified Targets: 8.10)] of TRANSFORMING OUR WORLD: THE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT.

 

Postal Cash Card can be used as a debit card to pay bills in different shopping centres/departmental stores. It can be used as a medium of payment of utility bills (namely-Gas, Water, Electricity, Telephone etc.). Postal cash card can also be used as a tool for different types of payment and financial benefits of the Government to the mass people. The allowances and financial benefits include widow allowance, senior citizen allowance, freedom fighter allowance, student fellowship, education allowance, agricultural loans & subsidies.

 

Postal Cash Card is a plastic card with magnetic strip. It uses NFC technology. It is awarded with PCIDSS certification. It reduces risk of carrying physical money. Users of Postal Cash Card have the opportunity to deposit, withdraw and transfer (card to card) money through ATM booths listed under fixed network and POS machine, fixed & mobile ATM booth of post offices located in all over Bangladesh. Geographical limitability will reduce i.e. Geographical mobility will increase among people as withdrawal of money in this system is easily available. It plays significant role in internal economy as well as in international economy. If use of this card increases in whole economy, nation will be benefited from greater transparency, fast delivery to the beneficiaries, increased efficiency & security, better planning, reduced pilferage & duplication, effective economic tool, increased tax base, reduced disbursement overhead cost etc. All these activities of Postal Department are collectively playing a vital role in implementing digital strategies and solutions to significantly improve the service quality to citizens in a replicable manner in public service areas.

 

Postal Cash Card is operated in collaboration with Information Technology Consultants Limited (ITCL), and the state-owned bank, Sonali Bank Limited. The card is hosted on ITCL’s “Q-Cash” network, one of the largest networks of ATMs and POS devices in Bangladesh. This network is comprised of 26 member banks, and several other financial institutions, Government agencies, and retailers. This means that the card is not provided in a closed loop system of the Post, card-holders are therefore able to access their funds on ATMs and PoS devices operated by other institutions participating in the “Q-Cash” interbank switch, in addition to those provided by Bangladesh Post and Sonali Bank Limited.

 

Postal Cash Card ensures proper disbursement of mass people’s hard toiled money from one end to the other. There is no possibility of disbursing the money to the wrong receiver. This financial service is maintaining timely transaction, safety and security of the money. Postal Cash Card has become an emblem of trustworthiness, transparency and accountability. Thus this service is applying ICT to provide ethical and transparent government services to enhance integrity and social justice.

 

Extensive use of Postal Cash Card would help the rural poor women to be an integral part of financial inclusion and this is indeed a prominent step towards financial inclusion for women previously excluded from financial inclusion. Improved and efficient service delivery through Postal Cash Card will positively impact upon personal, social and economic connectivity of the Population in rural and remote areas, People affected by natural disasters, Women, Senior citizens, Freedom fighter, Marginal Farmers, Landless Labours, Slum Dwellers, Vulnerable People, Student, Disable population etc. Providing ICT based Postal Cash Card service to the marginalized section of the population is ensuring free flow of economic, political, social and legal information to rural communities. It plays a significant role in community empowerment and recomposes their rights and social status. This service substantially contributed to reduce the digital divide and manifests our dedication in nation building as well as capacity building through empowering the education and social entrepreneurship development in rural areas. Its role can be extended to people of all walks of life especially rural people who find conventional banking system inconvenient. Thus Postal Cash Card can ensure more financial freedom and helping driving country towards stability, prosperity and sustainability.