Tuesday, 24 May, 2022

Banks-to-MFS transaction ceiling raised

  • Staff Correspondent
  • 26 April, 2022 12:00 AM
  • Print news

Bangladesh Bank increased the ceiling for transferring money between banks and mobile financial services (MFS).

The step aims to inspire people about cashless transactions.

According to a notice issued on Monday, the central bank directed the chief executives of banks to allow maximum Tk 50,000transfer a day from a bank to MFS account.

“Bangladesh Bank re-structured the transaction ceiling of personal account to inspire people in cashless digital payment,” read the circular signed by MezbaulHaque, general manager at payment system department.

The monthly transaction limit between a bank and an MFS account earlier increased to Tk 3 lakh from the Tk 2 lakh.

Bangladesh Bank officials said that the higher ceiling of transactions will reduce the pressure on alternative delivery channels including ATM and agent banking.

Limits for other types of transactions including cash out, personal to personal money transfer and maximum monthly balance will remain unchanged, according to the directive.     An MFS user can withdraw (cash out) maximum Tk 25,000 from a personal account per day while the limit is Tk 1.5 lakh for a calendar month.

The limit for person to person transaction is Tk 25,000 per day and Tk 2 lakh per month. An account holder can keep maximum Tk 3 lakh as balance in the MFS platform.    In 2020, as the coronavirus pandemic hit the world economy, the central bank raised the monthly transaction limit to Tk 2 lakh from Tk 75,000 and set the highest limit for each transaction at Tk 10,000.

MFS has now become an essential part of the lives of people in Bangladesh.

Even though the cash and credit cards are still widely used by many of the consumers, MFS such as bKash,Nagad, Rocket and Upay promise to replace current payment methods.

A new study says the global mobile banking industry is expected to reach $1824.7 million by 2026, while digital remittances will jump 45 percent between 2021 and 2025 to $428 billion.

There are 43.78 million active MFS subscribers under platforms of 13 banks who transact around Tk 23.66 billion per day, according to latest Bangladesh Bank data.