B Mirror Report: Automated banking activities are witnessing a sharp rise amid increased festive spending, as ATMs (automated teller machines), internet banking, and mobile financial services (MFS) are experiencing mounting pressure due to the Eid rush.
With only a few days left before Eid-ul-Fitr the biggest religious festival for Muslims the occasion will be observed across Bangladesh with both festivity and solemnity.
To cope with the growing pressure of cash transactions, the central bank has instructed commercial banks to take necessary measures to ensure adequate cash availability in ATM booths, facilitating smooth financial operations during the Eid holidays.
According to sources at Bangladesh Bank (BB), the country’s central bank, the usage of ATMs, internet banking, and MFS increases by more than 50 percent ahead of and during the Eid vacation.
An FE correspondent observed significant customer congestion at several ATM booths and MFS points in areas such as Rampura, Bailey Road, Dhanmondi, Banani, and Elephant Road in the capital on Sunday, Monday, and Tuesday.
BB spokesperson Arief Hossain Khan stated that commercial banks have been asked to ensure seamless and uninterrupted transactions through ATMs, Point of Sale (POS) terminals, QR codes, internet banking, online e-payment gateways, and MFS during the holiday period.
“Banks must ensure round-the-clock ATM services. Any technical glitches at ATM booths should be fixed promptly, and sufficient cash supply must be maintained,” he said, referring to the regulatory directive.
The regulator has also stressed the importance of maintaining security at ATM booths. Banks have been directed to ensure 24/7 POS services and to raise awareness among merchants and customers to prevent fraudulent activities.
The central bank has further instructed all banks and their affiliated mobile financial service providers such as bKash, Rocket, and Nagad to ensure smooth and hassle-free transactions.
Mohammad Mamdudur Rashid, Managing Director and Chief Executive Officer of United Commercial Bank (UCB) PLC, said that the number of both their own clients and customers from other banks using UCB ATMs to withdraw cash increases significantly ahead of Eid.
Considering the rising demand for cash, he said the bank has taken all necessary preparations, including regular cash replenishment through alternative delivery channels, to ensure customers do not face inconvenience during the Eid period. “ATM usage generally rises between 40 and 60 percent during major festivals like Eid,” he added.
UCB is one of the country’s top three commercial banks in terms of ATM network coverage and transaction volume.
To meet the increasing liquidity demand, commercial banks’ borrowing through the interbank call money market has also gone up in recent days.
According to Bangladesh Bank data, total turnover in the call money market stood at Tk 574 billion in the last 11 working days up to March 15, compared to Tk 491 billion recorded in the previous 11 working days.
Shamsuddin Haider Dalim, Head of Corporate Communications at bKash, said the MFS sector has experienced notable growth over the years due to the convenience of digital financial services.
He noted that people tend to spend more during festivals such as Eid, Puja, and other celebrations, as well as on special occasions, holidays, and at the beginning and end of the year.
Major festivals like Eid often lead to a sharp spike in transactions, driven by factors such as salary and bonus disbursements, inward remittances, shopping, dining, travel, and zakat donations.
He added that bKash also offers various cashback and discount campaigns during such festivals, encouraging a gradual shift among customers toward increased use of digital transactions.
During this year’s holy month of Ramadan, customers can enjoy up to Tk 10,000 in discounts and cashback on purchases such as clothing, footwear, electronics, groceries, as well as services like iftar-sehri orders, ticketing, and hotel bookings through bKash payments.
