The government is losing an estimated Tk93,300 crore in potential revenue annually due to cash-based transactions in the country.
Including expenses for printing, transporting, storing, and securing cash, the annual cost of a cash-dependent economy stands at Tk170,360 crore—equivalent to 3.24% of the country's Gross Domestic Product (GDP).
These findings were revealed in a research report by Bangladesh Bank. Titled "The Cost of Cash Study in Bangladesh: A Comparative Analysis of Cash and Digital Payment," the study compares the costs associated with cash and digital transactions.
According to the report, keeping a comprehensive record and verifying cash transactions is difficult, leaving a large portion of the economy outside the tax net.
The study estimates the size of the country's informal economy at approximately 27.2% of GDP.
Even excluding the government's potential revenue loss, the annual cost of cash transactions is around Tk77,000 crore.
Of this, commercial banks incur Tk36,800 crore, consumers Tk28,000 crore, small merchants Tk6,200 crore, and microfinance institutions Tk5,600 crore.
These expenses stem from cash management, security, travel, and transaction reconciliation.
In contrast, the annual cost of digital transactions is approximately Tk5,964 crore, accounting for just 0.11% of GDP.
This means the overall cost of cash transactions is nearly 28 times higher than that of digital payments.
Bangladesh Bank officials noted that cashless transactions represent the future of Bangladesh.
To this end, the central bank has taken initiatives to popularize Bangla QR, aiming to make at least 50% of the country's transactions cashless by 2028.
According to officials, an incentive mechanism has been introduced to encourage the adoption of Bangla QR, which is expected to boost usage among small and marginal businesses as well as service providers.
The study highlighted that although the cost of digital transactions is relatively lower, transaction fees, merchant costs, settlement delays, and a lack of digital literacy among consumers pose hurdles to its expansion.
Therefore, along with making digital transactions accessible and affordable, it is essential to strengthen tax oversight and ensure proper record-keeping for commercial transactions.
According to Bangladesh Bank data, as of the end of June this year, the total outstanding currency issued by the central bank stood at Tk370,269 crore.
Of this, Tk336,375 crore remained outside the banking sector.