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The amount of online banking transactions remained above Tk 8,000 crore for the fourth consecutive month in February as people found fintech-based transactions more convenient instead of visiting bank branches amid the outbreak of Covid-19.
Bangladesh Bank data showed that the amount of transactions through internet banking stood at Tk 8,477.3 crore in February 2021.
The amount of internet banking transactions exceeded Tk 8,000 crore for the first time in November 2020 when the transition value reached Tk 8,188.9 crore from Tk 6,286.7 crore in the previous month.
In December 2020, the transaction value stood at Tk 8,092.6 crore and the figure reached Tk 8,543.4 crore in January 2021.
Bankers said internet banking has been gaining popularity gradually in the country in recent years and the Covid outbreak has worked as a booster for the service.
Since the beginning of Covid crisis in the country in March 2020, people have become more cautious and have been trying to maintain social distancing in their day-to-day activities, including banking transactions, they said.
They said that internet banking facilitated customers to execute their banking transactions from the safety of their homes and avoid the risk of any physical contact.
The amount of transactions through the internet banking system of banks was Tk 6,063 crore in December 2019.
The transaction value through internet banking increased as new internet banking customers increased by 36.82 per cent or 9.1 lakh within a span of 14 months.
The number of internet banking users increased to 33.82 lakh at the end of February 2021 from 24.72 lakh in December 2019.
Bank customers nowadays can access a wide range of services anytime from anywhere by logging into banks’ online platforms or installing specific applications on their smartphones.
Utility bill and credit card bill payments, intra-bank and interbank fund transfers, transaction statements, fund transfers to mobile financial service accounts and account opening are among the services which can be accessed through internet banking.
Internet banking has not only brought relief to customers but will also help banks reduce their operating costs in future as the lower presence of customers at branches reduces the need for physical infrastructure.
Besides the increase in number of customers and value of transactions, the volume of monthly transactions through internet banking increased by 38 per cent or 6.28 lakh in a span of 14 months.
In February 2021, the number of transactions through internet banking increased to 22.80 lakh from 16.52 lakh in December 2019.
Prompted by the increase in transactions through internet banking, the BB in September 2020 raised the interbank daily online transaction limit, including a fivefold increase in the limit for institutional users.
For individuals, the daily limit was set at Tk 5 lakh executed through a maximum of 10 transactions using internet banking while the highest limit on a single transaction was set at Tk 1 lakh.
The daily transaction limit for institutional users was set at Tk 10 lakh executed through a maximum of 20 transactions using internet banking while the highest limit on a single transaction was set at Tk 2 lakh.
Earlier, there was no separate limit for institutional and individual users. The highest daily 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 on a single transaction set at Tk 50,000.
The IBFT is executed through the BB’s National Payment Switch Bangladesh.
