In a testament to the rising adoption of digital financial technology, internet banking transactions in Bangladesh surged in November, surpassing the figures from the previous month. Bangladesh Bank data reveals that internet banking transactions reached an unprecedented high of Tk82,866 crore in November, compared to Tk78,863 crore in October and Tk48,716 crore in September.
Despite the substantial increase in transaction value, the number of transactions witnessed a slight decline, dropping from a record 10 million in October to 9.75 million in November.
Bankers attribute this growth in Internet banking to the expanding community of tech-savvy individuals, notably the younger generation, who increasingly favour the convenience offered by digital platforms for their banking needs.
Pioneering Internet banking in Bangladesh two decades ago, Standard Chartered has played a crucial role in driving the rapid growth of this service. The availability of smartphones and the growing Internet user base have further facilitated the widespread adoption of internet banking across the country.
Internet banking, also referred to as online banking or e-banking, is a digital banking service enabling customers to execute various financial transactions over the internet through a bank’s website or mobile application. Transactions encompass checking account balances, transferring funds between accounts, bill payments, and accessing account statements, among other services.
One of the primary advantages of internet banking is its convenience and flexibility, empowering customers to carry out banking activities from any location with internet access, at any time, without the need to visit a physical bank branch. This not only saves time but also streamlines operations by reducing manual paperwork and in-person transactions, catering to those who prioritize efficient and hassle-free services.
The number of internet banking customers in Bangladesh nearly tripled from March 2020 to November 2023. Amidst the global pandemic in March 2020, the country had 2.7 million internet banking customers, witnessing a remarkable 203% growth to reach 8.1 million by November 2023.
The real-time gross settlement system of the central bank recorded transactions worth Tk5.18 lakh crore in October, reflecting an increase of over 7% from Tk4.8 lakh crore in September. Introduced in 2015 to facilitate real-time settlement of high-value time-critical payments, the RTGS system has gained widespread adoption by banks, corporate houses, and individual customers for instant payment settlements.
For individual customers, the maximum value per transaction through internet banking is Tk3 lakh, with a maximum frequency of 10 times a day and a daily limit of Tk10 lakh. Corporate customers, on the other hand, have a transaction limit of Tk5 lakh per transaction, a maximum frequency of 20 times, and a total daily limit of Tk25 lakh.