MFS cash-out fee for govt aid set at 0.7%

The finance ministry has set the cash-out charge to receive cash assistance from the government through mobile financial services (MFS) at 0.7%.

The Finance Division under the ministry says all ministries and divisions will follow this rate.

A circular signed by Finance Division Deputy Secretary Mahedi Masuduzzaman said the government distributes cash to beneficiaries for implementation of various programmes, including different allowances, honorariums, scholarships, and stipends, under the social safety net.

Moreover, cash also needs to be delivered to beneficiaries as part of various government activities. In such cases, a key goal of the government is to deliver cash to beneficiaries in a timely and uninterrupted manner.   

The circular also said the government had already been prioritising distribution of cash from the state coffers directly among beneficiaries through MFS following the Government to Person (G2P) method.

In this context, there is a need to determine a uniform cash-out charge for distribution of cash assistance through MFS. Because of that, 0.7% charge has been set.

The Ministry of Finance has directed various ministries and divisions to determine MFS operators for distribution of cash under the social safety net and other programmes, specify the scope of work of the operators, and monitor their activities properly.