DPE recommends disbursement of primary stipends thru’ Nagad

The Directorate of Primary Education (DPE) has suggested that stipends for primary school students in the current fiscal year (2022-23) should be distributed through Nagad, a mobile financial service provider of the Bangladesh Postal Department.

In a letter to the Secretary of the Ministry of Primary and Mass Education, the DPE requested that the primary stipends should be distributed only through this mobile financial service carrier.

The letter also referred to the State Minister for Primary and Mass Education and mentioned that as per the agreement signed on December 13, 2020, permission has been given to make a new deal with Nagad to disburse stipends and relevant guidelines can be amended accordingly.

According to sources, the disbursement of primary education stipends used to be carried out through the Government-to-Person (G2P) payment system issued by the Ministry of Finance.

However, now the stipend payout is coordinated between the Finance Division’s G2P system and the Directorate of Primary Education’s (DPE) integrated digital system. Previously, stipends from the Ministry of Primary and Mass Education could only be received through SureCash, but later the Postal Department’s Nagad was tasked with the distribution.

The government’s costs for stipend distribution have significantly reduced as a result of its partnership with Nagad, and students receive the full amount since the MFS provider sends stipends without cash-out charges.

The Chief Business Officer of Nagad, Sheikh Aminur Rahman, announced that Nagad successfully disbursed education stipends in the fiscal year 2021-2022 at a minimal cost. He stated that the company will continue to provide these services with the same level of transparency and accuracy in the current fiscal year if they are given the opportunity to do so. He also emphasized that Nagad is working to improve the lives of marginalized individuals and that the successful disbursement of primary education stipends is evidence of this.

During the last fiscal year, Nagad, a state-owned mobile financial services (MFS) operator, sent government stipends to the guardians of over 1.25 crore primary school children. Within a few months, Nagad completed the disbursement of stipends amounting to more than Taka 4,500 crore, and the guardians did not face any difficulties in receiving the funds.

The students are registered on Nagad’s digital platform using information from their birth certificates, mobile phone numbers, and the National Identification Numbers (NIDs) of their guardians. Once the stipends are disbursed, the students’ guardians instantly receive the funds with cash-out charges in their Nagad accounts.

The government introduced primary stipends in 1999 to reduce school drop-outs and retain female students in classes. Under this program, pre-primary students receive Tk75 per month, students in classes I-V receive Tk150 per month, and two children from the same family receive Tk300 per month.

Meanwhile, students in classes VI-VIII receive Tk200 per month, and two children from the same family receive Tk400 per month. Currently, the government disburses stipends to 1.4 crore school children across the country.the