They are going electronic and now being used for money transfer
The government’s postal department, which was losing both its glory and business to the fast growing private courier services, fought back well in the last few years. Now the post offices are going electronic, setting up ATMs (automated teller machines) and issuing thousands of postal cash cards to the unbanked people, contributing greatly to financial inclusion. “We’ve already sold 50,000 cash cards. The number will go up to 60 lakh in three years,” said Shudhangshu Shekhar Bhadra, additional director general of Bangladesh Post Office. A postal cash card is a plastic card (like debit cards issued by banks) that has a magnetic stripe. A client can deposit or withdraw money with this card from any point of post offices across the country. Already, the Post Office has set up devices at 838 of its offices and the number will reach nearly 1,500 in next one month, said Bhadra. The postal department launched the service in July 2011. Gradually, clients will be able to use the cards in any ATMs of Q-Cash, a payment gateway that has deals with more than 25 banks, and at POS (point of sales) centres. Expatriates can also remit money easily to their beneficiaries. To give the move a push, the Post Office has recently signed a deal with Sonali Bank, the largest bank in terms of network having more than 1,200 branches, to reach the service to more people. “We’ll set up 1,200 ATMs in two/three years. We’ve already installed two ATMs that now run on a trial basis,” said the official of the Post Office. A public-private initiative has made the initiative a success in a couple of years. The Post Office went into a joint venture with Q-Cash in 2010 to go electronic. As part of the deal, Q-Cash provides technical and operational supports. Under the project, the Post Office launched an electronic money transfer service (EMTS), commonly known as mobile money order service, in 2011. People can remit through the EMTS. This mobile- and web-based remittance service is available in 2,000 post offices. The entire transaction takes place within a minute and both the sender and recipient get confirmation of the remittance and disbursement in their mobile phones. The Post Office also works for three programmes of the World Bank to disburse money of the lender to targeted groups under social safety net schemes. “Q-Cash is also providing devices to the post offices so that customers can use the cash cards at their convenient post offices,” said Kazi Saifuddin Munir, chief executive officer of Q-Cash. “It’s an intelligent device with a lot of in-built capacities including internet,” said Munir.
Courtesy of The Daily Star
