Digital wallets and smartphone-based payment services are gaining popularity resulting in a cashless economy worldwide. In Bangladesh, the cashless economy is also gaining popularity through Mobile Financial Services like bKash, Rocket, mCash, Upay, Trust Axiata Pay (tap), MY Cash, TeleCash, Tap ‘n Pay, FSIBL, Rupali Bank, OK Wallet, Islamic Wallet and Nagad. These MFS have made life easier for people by providing services like paying the utility bill, purchases, insurance, fees, donations, savings, and loans.
And now, Bangladesh Bank has allowed customers to make unlimited number of transactions through mobile financial services (MFS). According to a circular issued yesterday, Bangladesh Bank also increased the cash-in limit for MFS customers by more than double. These changes are set to allow customers to make more transactions through MFSs as many people now rely on such facilities for a host of payments and bills. Earlier, a customer could make 25 cash-in and 20 cash-out transactions per month. However, the central bank has set the cash-in limit at Tk 5 lakh per month, up from Tk 2 lakh earlier.
Of the amount, a customer will be able to cash in Tk 2 lakh through agents and Tk 3 lakh through bank transfers each month. The cash-in limit from the agent point will be Tk 30,000 per day and Tk 50,000 through bank transfer. On the other hand, the cash-out transaction amount limit has remained unchanged, meaning that a customer will be able to cash out Tk 1.5 lakh per month and Tk 25,000 per day.
Bangladesh Bank had earlier increased the monthly person-to-person transaction limit for MFSs to Tk 200,000 from Tk 75,000 at the onset of the pandemic in 2020. Dewan Nazmul Hasan, chief executive officer of Trust Axiata Pay (TAP), welcomed the central bank to increase in the limit and withdrawal transaction restraints. “This will help micro-merchants use MFS services more frequently,” he said.
A client can keep a maximum deposit of Tk 3 lakh in their MFS account. In Bangladesh, over 11 crore account holders conduct two crore transactions through MFS each day. According to the latest central bank data, MFS operators register Tk 2,366 crore in average daily transactions, employing 11.23 lakh agents. The numbers mentioned in this data would have been higher if Nagad could be included. Launched in 2019, Bangladesh Post is yet to receive a full license for its MFS arm.