Payment through MFS reduces hassle in RMG

Staff Correspondent

17 March, 2021 12:00 AM printer

Wage digitisation in the apparel sector through mobile financial services (MFS) has minimised wage disbursement related difficulties and strengthened the digital ecosystem for low-income earners, RMG entrepreneurs said.

They made the remarks at an experience sharing programme on ‘RMG Payroll Digitisation: Experience & Expectations’, organised by bKash at a city hotel on Tuesday.

Chief Commercial Officer (CCO) of bKash Mizanur Rashid, Managing Director of Newage group Arif Ibrahim, Managing Director of Ananta Group Inamul Haq Khan, and Chairman of AJ Group Anwar Hossain Chowdhury shared their experience on the payroll digitisation.

Inamul Haq Khan, who is also a director of BGMEA, said that the hassle of disbursing wages to garment workers through bKash has come down to almost zero. This digital payroll system has also contributed to the women empowerment.

 “Workers even received their salary sitting at home during the first month of pandemic. That time they had no way to come physically to take their salary in cash, but they got their salary on time through MFS”, he said.

The BGMEA leader said that since August last year, Ananta Group is disbursing salaries to its 12,000 workers through lead MFS company bKash. AJ Group Chairman said that disbursing salaries to the workers through analogue way was one of the toughest parts of the company.

Mobile financial services have eased the difficulties. Extending credit to the bKash, Anwar Hossain Chowdhury said that it has brought a revolution in financial management for the apparel sector.

Arif Ibrahim thanked Bkash for the overall management and said that the digital approach has benefited both employers and workers in many ways.

At the beginning of the epidemic, the government distributed wage incentive loans to workers through mobile financial services. As a result, 11 lakh workers were brought under the digital payroll system in a short period of time. However, now the number came down to 7.5 lakhs.

bKash CCO Mizanur Rashid said Bangladesh still lags behind comparing the neighboring countries in using financial services. Around 95 percent workers in India, 85 percent in Vietnam, 84 percent in Indonesia and 78 percent workers of China get salary through digital system while the percentage is only 40 percent in Bangladesh.