Wednesday, June 26, 2019

RMG workers' wage payment system to go digital

Economic Reporter :
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Rubana Huq on Tuesday said the wage payment system of RMG workers is going to be digitised soon.
"RMG workers will receive their wages under the digitised system.We're going to sign a memorandum of understanding (MoU) with the ICT Ministry on June 27 to introduce mobile banking 'E-wallet for RMG workers'," she said.
The BGMEA chief was speaking at a knowledge-sharing event on creating the business case of MFS-Based Wage Digitisation in the RMG Sector.
The International Finance Corporation (IFC), a member of the World Bank Group, organized an event on Tuesday to establish the business case for digital wage payments using mobile financial services in the readymade garment (RMG) sector and launched a series of resources to enable garment factories to shift from cash to mobile-based wage payments for their workers.
Specialized tools will allow mobile financial service providers to expand the range of digital payments for garment workers and ensure that the RMG sector can take the initiative forward, said a press release.
It is part of IFC's and Bangladesh Bank's joint initiative to include women financially through Mobile Financial Service (MFS) adoption.
There is a stark gender gap in access to financial services in Bangladesh, where only 36 percent of women have a formal bank account, compared to 65 percent of men. Given the economic significance of the readymade garment sector, which is dominated by female workers, digitizing wage payments through MFS can have a significant impact on women's financial inclusion.
When garment workers open MFS accounts to receive their salaries, they can avail a broad range of financial services. However, about 90 percent of factories pay their workers in cash, which is a missed opportunity for both the financial and RMG sectors.
IFC Country Senior Country Officer Nuzhat Anwar and Deputy General Manager of the Bangladesh Bank Masuma Sultana, among others, were present at the event.