• Friday, Nov 15, 2019
  • Last Update : 03:34 pm

Mobile banking transactions fell by 12.3% in September

  • Published at 10:10 pm November 5th, 2018
web-bkash-rocket
Collected

According to a BB source, the central bank brought down the daily ceiling of mobile cash-in transactions from Tk25,000 to Tk15,000, while slashing the maximum cash-out limit from Tk25,000 to Tk10,000 from February 1, 2017, in order to combat the illegal use of MFS

Mobile banking transactions fell by 12.3% to Tk30,165 crore in September, from Tk34,399 crore in August.

According to Bangladesh Bank (BB) data, the average daily mobile banking transaction also fell by 9.4% to Tk1,005 crore from Tk1,109 crore in August.

Furthermore, inward remittance using mobile financial services (MFS) fell by 3% to Tk30.78 crore, cash- in transaction by 14.7% to Tk12,052 crore, cash-out transaction by 11.6% to Tk11,345 crore, peer-2-peer (P2P) transaction by 13.1% to Tk4,578 crore, salary disbursement by 51.8% to Tk398 crore, and merchant payment by 17% to Tk277.99 crore, in September.

Speaking to the Dhaka Tribune, bankers said that the reason behind more transactions in August was people receiving more money in the form of remittance, salaries, and bonuses in celebration of Eid-ul-Azha, which they then sent to relatives using mobile financial services. 

Head of Corporate Communications of Bkash Shamsuddin Haider Dalim told the Dhaka Tribune that merchant transactions were also higher in August because of Eid. 

“This is why the overall amount of transactions saw a rise in August,” he added, explaining that the fall in September was inevitable.

Despite the fall in transactions, however, the number of active mobile money accounts increased by 6.2% to 31.4 million and registered clients by 3.2% to 66.7 million, while the number of MFS agents increased by 1.4% to 862,103.

According to a BB source, the central bank brought down the daily ceiling of mobile cash-in transactions from Tk25,000 to Tk15,000, while slashing the maximum cash-out limit from Tk25,000 to Tk10,000 from February 1, 2017, in order to combat the illegal use of MFS.

BB also brought down the monthly maximum cash-in limit from Tk150,000 to Tk100,000, and the monthly maximum cash-out limit from Tk150,000 to Tk50,000.

Industry insiders opined that this move have failed to deter the illegal use of MFS transactions, as users who previously used 10 SIM cards for their transactions, now use 15-20 of them. A senior Bangladesh Bank official said that this led to the increase in number of active mobile money accounts.

At present, 18 banks are providing mobile financial services to their customers. Brac Bank’s bKash and Dutch Bangla Bank’s Rocket are currently controlling above 90 % of the MFS market, according to BB data.