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The amount of money transactions through internet banking soared by 63.63 per cent to Tk 2,19,960 crore in the July-February period in the financial year 2022-23 compared with that of Tk 1,34,425 crore in the same period of the previous financial year, as a growing number of people now prefer digital platform for executing banking activities.
According to Bangladesh Bank data, the transaction amount through internet banking advanced by 247 per cent to Tk 29,386 crore in February 2023 compared with that of Tk 8,477 crore in February 2021.
The number of internet banking transactions rose to 57 lakh in February 2023 against 22.80 lakh in February 2021.
In February 2022, the number of internet banking transactions was 44.96 lakh worth Tk 17,763 crore.
The usage of online platforms for banking activities has seen a significant increase among clients, particularly among the young people.
A huge number of people, especially the young generation, are using the online platform to carry out banking activities.
The number of internet banking users jumped to record 65.7 lakh in February 2023 from 47 lakh in February 2022 and 33.82 lakh in February 2021.
The number of internet banking users is continuously rising as the adoption of technology has reached its peak amid the Covid outbreak in the country.
Bankers said that internet banking gained popularity after the outbreak of the Covid pandemic in 2020.
With people becoming more cautious and prioritising physical distancing, internet banking is seen as a safe and convenient way to carry out banking activities.
Banks have introduced various products, including mobile applications, to attract more customers to their online banking systems.
Growing number of internet users and availability of smartphones facilitated the internet banking to expand largely.
To accommodate the growing trend of online transactions, the Bangladesh Bank raised the interbank daily online transaction limit in September 2020, which included a fivefold increase in the limit for institutional users.
This included a fivefold increase in the limit for institutional users, with individuals now able to transfer up to Tk 5 lakh a day, up from Tk 2 lakh previously.
The ceiling on a single transaction was also raised to Tk 1 lakh from Tk 50,000, and customers are now allowed to settle a maximum of 10 transactions a day, up from five in the past.
The daily transaction limit for institutional users has been set at Tk 10 lakh executed through a maximum of 20 transactions using internet banking while the highest limit for a single transaction has been set at Tk 2 lakh.
Earlier, there was no separate limit for institutional and individual users. The highest daily interbank fund transfers (IBFT) limit for both institutional and individual users was Tk 2 lakh.
Under both the criteria, a maximum of five transactions were allowed in a day with the highest limit for a single transaction set at Tk 50,000.
The IBFT is executed through the BB’s National Payment Switch Bangladesh.
Bangladesh Real Time Gross Settlement and Bangladesh Electronic Funds Transfer Network of Bangladesh Bank have also boosted internet banking.
Customers can settle transactions of large volumes instantly through the RTGS while the BEFTN helps them carry out retail transactions within a day.
(NA)
