Nagad to disburse 75 percent of social safety net allowances through revised agreement with ministry

Nagad, the Postal Department’s mobile financial service, has inked an agreement to disburse (revised) 75 percent of the total allowances under the government’s social net program. The Department of Social Services signed the agreement with Nagad, expressing satisfaction with the previous year’s disbursement of the government’s social safety net program.

Today (Thursday), a tripartite agreement in this regard was signed at the Ministry of Social Welfare. According to the agreement, under the social safety net program, Nagad will distribute 75% of the total allowances stated by the government-to-person (G-to-P) system.
Sheikh Rafiqul Islam, Director General, Department of Social Service (DSS), Md. Siraz Uddin, Director General of the Department of Posts and Md. Shafayet Alam, Executive Director of Nagad signed the agreement on behalf of their respective organizations.
Nuruzzaman Ahmed, Minister of Social Welfare, and Mahfuza Akhter, Secretary of the Ministry were also present during the signing ceremony.
last year, The Department of Social Services disbursed allowance to 76 lacs 13 thousand recipients, out of a total of 88 lacs 50 thousand beneficiaries, through Nagad and another MFS. This time, the allowance will be distributed in the same manner.
As a result, the elderly, widowed, impoverished disabled, and disabled students will continue to receive the stipend through Nagad. Earlier in the fiscal year, Nagad disbursed funds to 75 percent of all beneficiaries under these four programs. As per the decision of the authority, the third gender and the Bede community will also receive the allowances in this phase.
Beneficiaries will be able to utilize the allowance money as needed and withdraw the money from the nearest Nagad uddokta Point. To cash-out this allowance, beneficiaries do not need to spend extra money. The government will give a cash-out charge of Tk 7 per thousand, with Nagad bearing the remainder of the cost.
Previously, during the Covid-19 Pandemic, Prime Minister Sheikh Hasina provided Eid presents to 5 million poor households through MFS, with 17 lakh families receiving the gifts through Nagad. In addition to distributing more allowances and government assistance during the pandemic, the government has also distributed donations and stipends to about 15 million primary school students through ‘Nagad’.
Tanvir A Mishuk, Managing Director of Nagad said, “Nagad has already demonstrated efficiency in distributing allowances and the government’s safety net. This agreement demonstrates that we have once again earned the government’s trust. We have always prioritized the country and its people when developing our services. That is why, in a short period of time, we have gained the government’s and people’s love and respect. We believe, that the day is not far off when the Nagad will help to digitize the whole allowance distribution system the government, ensuring the people receive their entitlements with ease.”
Safayet Alam, Executive Director of Nagad said, “Nagad has been distributing allowances for the Government of Bangladesh’s social security program in collaboration with the Ministry of Social Welfare for a long period of time. We expect that the new amendment will enable us to carry out these duties more efficiently and continuously by utilizing cutting-edge digital technology.
At present, Nagad has more than 6 Crore registered customers with an average daily transaction of 750 crores.