Government Allowances Now Linked to NID-Registered SIM Cards

From July 2025, all government social security allowances must be disbursed through mobile numbers registered with beneficiaries’ own National Identity Cards (NID). The decision, introduced by the Department of Social Services, applies to all mobile financial service (MFS) providers—not just Nagad or bKash. Recipients can now choose any institution offering these services.

Why the Change Was Needed

Until now, allowances were distributed in cash or through a Government-to-Person (G2P) system mainly via Nagad and bKash. But elderly people, especially in rural areas, often used the mobile numbers of family members since many of them did not own phones. Complaints surfaced for years that grandchildren or relatives withdrew the money and kept it, while the actual beneficiaries never received their allowances.

To prevent such fraud, each recipient is now required to register a SIM card against their own NID. Payments will only be transferred to accounts directly linked to these registered SIM numbers.

Allowance Coverage

Currently, around 12.8 million people benefit from the Social Services Department’s programmes, which include old-age allowances, widow and distressed women’s support, stipends for persons with disabilities, development initiatives for the Bede and Hijra communities, assistance for tea workers, and other schemes for underprivileged groups.

Official Statement

Md. Mosharraf Hossain, Director of the Social Security Division, explained that all beneficiaries—new and existing—will be brought under this system in phases. Beneficiaries must open an MFS account under their own NID using their fingerprints and photographs. Payments will then be deposited directly into these accounts.

However, he acknowledged difficulties for some elderly beneficiaries whose fingerprints cannot be verified for SIM registration. “In such cases, exemptions will be considered individually,” he said. For those who cannot operate mobile phones at all, local social services offices will keep them under special supervision.

End of Exclusive Contracts

For the last five years, Nagad handled 75% and bKash 25% of all allowance payments across the country. That arrangement ended in June 2025 with the expiry of their contract. Under a new Finance Division circular, beneficiaries themselves will now select their preferred bank or MFS provider—ensuring more freedom of choice and eliminating exclusive deals with specific companies.

Tackling Irregularities

There have been instances of fraud in the past. In one case in Tangail’s Mirzapur upazila, an elderly woman named Behula Begum found that her registered number had been secretly replaced with another, causing her allowance to be diverted to someone else’s account for over a year. After her complaint, authorities intervened.

The Social Services Department confirmed that similar irregularities have been reported and assured that corrective actions are being taken whenever such cases come to light.