Mobile financial transaction falls for the first time in Feb

Bankers attributed Bangladesh Bank’s tightening MFS guideline to the fall of mobile financial transaction
mobile-banking

Financial transaction through mobile has dropped last month for the first time since launching mobile financial service (MFS) by the central bank in 2011.

Bankers attributed Bangladesh Bank’s tightening MFS guideline to the fall of mobile financial transaction.

In February, mobile financial transaction stood at Tk6,534 crore, down 8.6% from Tk7,149 crore in January and volume of transactions declined by 12.7% to 29,022,643 crore during the period, the BB data showed.

“Transaction through mobile took a hit due to imposing ceiling for daily and monthly transaction,” said a senior executive of a private bank.

He said people who have no account are not allowed to transact, leading to lower volume of transaction.

In September last year, Bangladesh Bank (BB) tightened MFS guideline, limiting the number of money transactions through mobile phone accounts and keeping a provision of cancelling licences to agency ship to check forgeries.

Restriction has also been imposed on mobile transaction for people who have no mobile account and highest ceiling was set Tk10,000 for daily and Tk25,000 for monthly transaction from one mobile account to other.

According to BB, number of registered agents in February was 2,57,561, an increase of 23.35% from the previous month’s 2,08,806 and registered clients reached 1.5 crore, up by more than 7% from 1.4 crore during the period.

“Cash-in” transaction declined by 8.46% to Tk 2,753 crore and “cash-out’’ transaction fell by 9.67% to Tk2533 crore during the period.

Remittance sent using MFS has also dropped by 38.43% in February compared to the previous month.

Of 28 banks that got MFS approval, 19 are in operation.

The BB has introduced MFS in 2011 to bring poor and unbanked people under banking activities as well as to facilitate the Bangladeshi expatriates to safely send their remittances in the rural areas.

Mobile banking service gained popularity for easy and hassle free transaction as the number of mobile financial services customer crossed the milestone of one crore in November last year.

Source: Dhaka Tribune