Important Points from Newspapers with references…

Bangladesh has a long way to go to become a cashless society as only six percent of the total “A cashless society a distant dream”, Cashless Shopping
transactions are now settled through the electronic mode. and Dining, AKM Zamir Uddin, The Daily Star, May
06, 2019
In Bangladesh, going cashless indicates the use of credit and debit cards, automated teller machines https://www.thedailystar.net/supplements/cashless-
(ATM), point of sale (PoS). shopping-and-dining/news/cashless-society-distant-
dream-1739377
There are 14.66 million debit cards and 1.13 million credit cards in circulation, according to the
Bangladesh Bank.

But debit card only will help in going cashless if people use it to purchase goods and services, said
Mashrur Arefin, managing director of City Bank.

At present, only 2-3 percent of the debit cardholders make purchases with it.

Lenders have so far disseminated credit card to only eight to ten districts, meaning the country’s
majority of the population are not accustomed to this mode of payment, according to Arefin.

“A strong collaboration is required among banks, mobile operators and payment service providers to
give momentum to the cashless movement,” he added.

MTB is hopeful that cashless transactions will catch on in a big way and in the next five years will
make up to 10 percent of total transactions.

The bank will promote the virtues of credit card use in every district, he said, adding that the bank has
recently set up airport lounges in Chattogram and Sylhet to tempt people.

The electronic payment mode has an important role to play in making the economy vibrant as it
encourages people to engage in economic activities, said the central bank report.

People can also pay utility bills, loan instalments and insurance premium through the platform.

In 2012, the central bank set up the National Payment Switch Bangladesh (NPSB) with a view to
attaining interoperability among banks for card-based and online retail transactions.
At present, the NPSB is processing interbank ATMs, POSs and the internet banking fund transfer
(IBFT) transactions.

In a major move, the central bank launched the Real-time Gross Settlement System (RTGS) in 2015,
facilitating safe, secured and efficient interbank payment system in a digital manner.

The system allows banks to transfer funds from one bank’s account to that of another on a real-time
and on gross basis.

The RTGS is designed to settle high-value (more than or equal to Tk 1 lakh) local currency as well as
foreign currency transactions on real-time basis.

Currently, MFS transactions average Tk 1,100 crore daily.

Interoperability among MFS is yet to be introduced, which has created a barrier to expanding the
service further, said a BB official.
ATM card users are a new target of fraudsters as the use of plastic money is on the rise. ATM forgery unearthed, Sajjadur Rahman and
Rafiul Islam, July 25, 2013, The Daily Star,
In June 2012, a credit card scam involving over Tk 10 crore was detected at the United Commercial https://www.thedailystar.net/news/atm-forgery-
Bank (UCB). unearthed

The bank identified four of its top and mid-ranking officials, who withdrew the amount from the
UCB using 21 credit cards between 2007 and 2012.

In almost all cases of debit and credit card fraud, it was found that bank employees were involved in
those, either directly or indirectly, and they provided the fraudsters with information about clients.

However, many such cases have gone unreported, as Bangladesh Bank, the regulator of the country's
banking industry, has no mechanism to get information on this type of fraudulence. And it is yet to
issue any security guidelines in this regard.

Recently, there is a rise in the use of plastic money, so are cases of card fraud.

According to the banking industry, around 10 lakh credit cards worth $120 billion are active in the
economy.

They install a camera above the ATM machine to record the image of a cardholder
typing the password, and fix a small device to the ATM card reader to copy the cardholder's
information.

He said his bank received complaints of credit card fraud involving around Tk 6 lakh in 2012.

She said the bank has a monitoring system to avert card fraud. “Even if there is any such case of
fraud, victims can contact our call centre any time to deactivate the card,” she added.

A customer had to fill up the online transaction form and submit it either through a Bangladesh Bank reverses new credit card rules on
mobile app, an internet platform or as a hard copy before purchasing goods or services online purchases, bdnews24.com, 24 Nov 2019
online by international credit card, according to the previous circular issued by
https://bdnews24.com/business/2019/11/24/bangladesh-
Bangladesh Bank.
bank-reverses-new-credit-card-rules-on-online-
purchases
The respective bank would then scrutinise the form and activate the credit card if no
irregularity was found. The credit card would be deactivated automatically once the
transaction was complete.

The technical part to connect OTAF submission system to the mobile app and internet
requires time. The banks could not prepare them for it as there was no prior directive
for them. Therefore, the online transaction using international credit card suddenly
turned manual from digital.

Bangladesh Bank has waived a new requirement for an authorisation form for every
online purchase from abroad by international credit card.

The central bank issued a notice on Sunday after it came under intense criticism for
introducing the so-called OTAF, or online transaction authorisation form.
The authorities had introduced a new set of rules to stop illegitimate online payments
to participate in gambling or stock trading.

The waiver aims to “bring further simplification to online transactions”, according to the
latest notice.

The central bank has advised banks to maintain “necessary arrangements to guard
against illegitimate online payments abroad” by international credit card from
Bangladesh.

Participation in online casino or gambling, forex or stock exchanges and purchases of

cryptocurrency or lottery tickets and goods or services by way of credit card payment
will raise red flags.

Working with foreign fraudsters, a gang here in Bangladesh has been stealing Tk 50-60 lakh a month Making money thru' credit card forgery, March 16, 2017
from holders of international credit cards by cloning cards.
The gang has been charging the cloned cards at dodgy shops and the shops paid them back the money https://www.thedailystar.net/backpage/gang-making-
taking about 20-25 percent cut. money-thru-atm-forgery-1376680

While it is undeniable that anyone who has a credit card risks running up too much debt -- a Wiser is winner,
milestone that might take several years and lots of sacrifice to get rid of -- if used wisely the benefits Smart use of credit cards brings multiple benefits to
can outweigh the downsides. users, Cashless Shopping and Dining, Zina Tasreen, The
Daily Star, May 06, 2019,
One such wise use would be getting all members of one’s family supplementary cards issued under https://www.thedailystar.net/supplements/cashless-
the head of the family’s card. shopping-and-dining/news/wiser-winner-1739401

Kamran Ahmed, a businessman, had figured it out a while back. He has a Visa Signature credit card
from Standard Chartered Bank that came with two free supplementary cards, which he gave to his
son, a university student, and his wife, a homemaker.
The family of three uses the credit card for all expenses that can be made with plastic money, and in
so doing, Ahmed knows exactly how much was spent every month and where the money went, which
made budgeting easier.

As the primary cardholder, Ahmed could set spending limits on the supplementary cards, so the
possibility of his son and wife overspending is eliminated.

But what is of greater relief to him, being the busy businessman that he is, that he does not have to
worry about handing out monthly allowances to his wife and son; they simply use their credit cards
and he pays the bill in one go every month.

He even uses the card to pay for his household’s utility, mobile, internet and club bills every month
through the Auto Billspay feature. Every month, the bills are automatically debited from his Visa
Signature Card -- without his doing anything.

The combined spending of the three cards almost always exceeds the ceiling set for enjoying
cashbacks and he racks up loyalty points thick and fast. The points later come in handy when the time
comes to pay the Tk 10,000 annual fee for the credit card.

With the credit card the items can be purchased on equated monthly instalments, meaning, instead of
dropping a huge sum in one-go to acquire the product, its cost can be spread over a six-, 12-, 24- or
even 36-month period, so the purchase would not be taxing on one’s pocket in the end.

The card provides passenger handling service at the Hazrat Shahjalal International Airport, so one
does not have to lift suitcases to check in counters or off conveyor belt when arriving.

Thanks to Bangladesh Bank’s tripling of the limit for international online purchases to $300 per
transaction last year, planning for a foreign trip has become exponentially convenient if one has a
credit card.

Not only can one take advantage of the deals for hotels and air tickets but also buy entry permits to
tourist attractions beforehand, doing away with the hassle of queuing up for hours at end sometimes.

Back at home, all year round, he buys subscription to acclaimed foreign publications like the New
York Times, the Washington Post, the Financial Times, the New Yorker and so on, as well as books
from Amazon and mobile apps from Google’s Play Store to keep him informed on the latest
developments in his line of livelihood.

All very well, but a credit card, essentially, means one purchases goods and services in credit to the
bank, so the bill must be cleared, preferably in full every month, without fail. Otherwise, it negatively
impacts one’s credit score.

And here too, Ahmed has simplified matters: he has set up a standing instruction with his bank such
that the full bill amount is debited every month when it is due.
I have a credit card of a foreign commercial bank that I treat as a sort of debit card -- but with Perks of having a credit card,
benefits. Zina Tasreen, The Daily Star, August 23, 2017,
https://www.thedailystar.net/business/banking/perks-
For all transactions that can be made with plastic money, I use my credit card, and in so doing, I am having-credit-card-1452814
accruing loyalty points, thick and fast. The points later come in handy when the time comes to pay
the annual fee for the credit card.

I have been using the card for almost five years now and not once did I pay the annual fee with hard
cash: I simply relinquished a certain portion of my loyalty points to the bank.

All major credit card issuing banks like Standard Chartered, City, Eastern, Brac, United Commercial
and Mutual Trust now offer this facility.

The benefit of using the credit card for all my expenses as opposed to a combination of cash, debit
and credit cards is that at the end of the month I know exactly how much I have spent and can
calibrate my spending pattern accordingly.

Not least, I am also building credit, which is important to qualify for loans for major purchases like a
car or home.

The neat feature comes to use if one wants to purchase an expensive electrical appliance or furniture.

With the credit card the items can be purchased on equal monthly instalments, meaning instead of
dropping a huge sum in one-go to acquire the product its cost can be spread over a six-, 12-, 24- or
even 36-month period.
Most banks now tag 10-15 percent discounts with their VISA/MasterCard at selected eating joints
and lifestyle stores, 5-7 percent cash back on grocery spend, and free nights and dining discounts at
luxury hotels and resorts around the country -- all of which are always welcome.

During Ramadan time, almost all banks' premium credit cards are eligible for 'Buy 1 Get 1 Free' offer
for iftar and suhoor buffets at upscale restaurants. Some banks like City, Standard Chartered, Brac
and EBL extend this offer all year round.

But to me, personally, the biggest advantage of possessing a credit card is felt when making a trip
abroad.

Thanks to the Bangladesh Bank's tripling of the limit for international online purchases with a credit
card to $300 per transaction last year, planning for a foreign trip has become exponentially
convenient.

Not only can one take advantage of the deals for hotels and air tickets but also buy entry permits to
tourist attractions beforehand, doing away with the hassle of queuing up for hours at end sometimes.

While abroad, the option of having another payment source by way of a credit card is of always of
great help in case of unforeseen emergencies or purchases.

Many banks' marketing brochure states that the credit card purchases come with a 45- day interest
free window, but in reality, it rarely works like that.

Typically, banks give a 14-day window between the statement date and payment due date. Now if
one makes a purchase with the credit card a day before the bill is generated, he/she actually gets a 15-
day interest-free period and not 45 days.

The 45-day interest-free period can only be availed if the purchase is made on the day the monthly
bill is generated or the day after.

To ensure I never miss a payment, I have set up a direct debit with my bank account such that my
entire credit card bill is taken from my account every month automatically.

If setting up a direct debit seems too daunting, one can simply set a monthly reminder on one's
mobile phone to pay the credit card bill.

At the end of the day, a credit card means using the bank's money and one should be mindful of this
fact at all times.

One diktat that helps me keep my credit card usage in check is: if you cannot pay it upfront with the
debit card or cash, you cannot afford to charge it on the credit card either.

Customers of mobile financial service provider bKash will be able to load their wallets by way of Visa cardholders can now load up bKash wallets, The
their Visa debit or credit cards, in a development that will give further momentum to propagating Daily Star, March 24, 2020
cashless transactions in Bangladesh. https://www.thedailystar.net/business/news/visa-
cardholders-can-now-load-bkash-wallets-1885009
The service comes in the thick of the coronavirus outbreak.

It is said that the novel virus spreads through bank notes, a disclosure that has prompted South
Korea's central bank to quarantine bank notes and China to clean potentially infected cash with
ultraviolet light and high temperature.

This prompted the Bangladesh Bank on Saturday to order banks to take extra safety measures for
those who would be handling banknotes to prevent the financial system from becoming an agent of
community transmission of the deadly coronavirus.

The central bank also asked banks to accelerate online services so that customers need not visit
branches in person to carry out banking.

Customers can pay for a wide range of service through bKash: mobile recharge, money transfer,
payment at point-of-sales terminal, pay utility bills, buy tickets, pay insurance, and so on.

"Particularly at this moment of emergency, customers with Visa cards can avoid visiting MFS agent
points," said bKash.

The relationship of banks, cards and mobile financial service will bring in more opportunities of
digital transactions across the country, which would be hassle-free, secure and reliable, said Kamal
Quadir, chief executive officer of bKash.

"We have always been committed to growing the digital ecosystem with our strong partnerships in
Bangladesh. After partnering with bKash to enable credit card bill payments, we are excited to launch
the Add Money service for all Visa cardholders on bKash," said TR Ramachandran, group country
manager of Visa for India and South Asia.

With the large number of Visa and bKash users, this service will make digital payments simple and
seamless for people across the country, he added.
The country's first and only legal direct-to-home satellite service provider Akash DTH offers free Akash DTH offers first month free subscription with
subscription for the first month to its new customers who will purchase the connection with Brac Brac Bank cards, The Business Standards, 26
Bank credit or debit cards. November, 2019
https://tbsnews.net/companies/techit/akash-dth-offers-
Any purchase through banking channel, online or EMI will enjoy this one-month free subscription. first-month-free-subscription-brac-bank-cards

In my mind, I cannot envisage a life without my credit cards. To me, they are a sign of comfort, Credit cards 101, Nasreen Sattar, The Daily Star, June
security, and most importantly, convenience. Despite the benefits though, there is also a downside to 26, 2018 https://www.thedailystar.net/lifestyle/penny-
too much dependency and over usage. wise/credit-cards-101-1595422

let's talk about the history of the credit card in Bangladesh a bit. ANZ Grindlays Bank (now Standard
Chartered) first started acquiring international card brands like MasterCard and Visa Card back in
1989 through a limited Merchant Network. It also became the first bank to issue MasterCard and Visa
credit cards in this country on January 1, 1997.

A credit card may just seem like a plastic card, but its benefits far outshine its humble outer form. It is
not only secure and easier to carry, but it also gives you a sense of status.

For most of us, the days of carrying wads of cash for buying things are a thing of the past. And that is
a good thing too, as carrying around loads of cash was never a good idea, what with all the
pickpockets and thugs around

Most banks are now issuing dual currency credit cards; meaning you can use your credit cards locally
as well as overseas. Imagine the bliss of travelling without having to carry lots of foreign currency.
The government of Bangladesh has increased the travel quota over the years to $7,000 for non-
SAARC countries and $5,000 for SAARC countries. The foreign currency part of your credit card
will be connected to this entitlement, provided the necessary dollar endorsement had been made on
your passport by your bank.

Checking into good hotels also got a lot easier as a credit card is generally required as a guarantee
during your stay. The hotel will always take a deposit depending on the length of your stay. At the
end of your stay, the balance will be returned to your card account.

You can also use your card to make online purchases, buying airline tickets, booking hotels,
purchasing items on Amazon.

Don't forget that most top banks nowadays have opened their lounges at the airport, both at the
International and Domestic sector. Your card (depending on the type you have) will allow you to use
said lounges to rest your tired feet before a journey, and also to grab a bite.

credit cards are very susceptible of being stolen if you don't keep an eye on any belonging you are
carrying it in. You will be surprised how someone, in the blink of an eye, can get hold of it and use it
at big outlets, purchasing just about anything. As soon as you realise it has been stolen, report it
immediately, whether you are in the country or travelling. Card issuing banks always have a 24-hour
service in place specifically for this eventuality. Try and carry more than one card to avoid being in a
helpless situation. Also, it's wise to keep some cash in hand.

The introduction of microchips on our credit cards has made them more secure; meaning you have to
use a pin code to pass a transaction. Unfortunately, there are agents working in big outlets who have
mastered the art of copying the pin code and your card number and amassing huge bills at your
expense! Please make sure you do not share your pin code with anyone. I know of people who are too
lazy to go shopping, so are quite comfortable sending someone else with their credit card and pin
code to do The introduction of microchips on our credit cards has made them more secure; meaning
you have to use a pin code to pass a transaction. Unfortunately, there are agents working in big
outlets who have mastered the art of copying the pin code and your card number and amassing huge
bills at your expense! Please make sure you do not share your pin code with anyone. I know of people
who are too lazy to go shopping, so are quite comfortable sending someone else with their credit card
and pin code to do it instead. This is an absolute NO! Always remember to memorise your pin, and
avoid saving it on your cell phone or write it down anywhere. A stolen cell phone can reveal a lot of
information.
When you are travelling overseas, use your card carefully, and do not go on a shopping spree with it.
We all tend to do it especially since it is so easy to purchase whatever you want with it. I have been a
victim myself; it was only when I returned home from a trip that I realised the magnitude of the huge
bills I had amassed.

To avoid the maximum amount of burden, it is better to have multiple cards from different banks and
split your foreign currency quota between them. That way, if something goes wrong with one card,
you have a fallback with the other cards.

To avoid the maximum amount of burden, it is better to have multiple cards from different banks and
split your foreign currency quota between them. That way, if something goes wrong with one card,
you have a fallback with the other cards.
The central bank has increased the maximum limit of cash US dollar for travellers' to $12,000 from Bangladesh Bank raises maximum limit of US dollar for
the existing level of $5,000 and $7,000 for a calendar year. travelers, The Financial Express, July 26, 2019,
https://thefinancialexpress.com.bd/economy/bangladesh-
The revised limit of foreign exchange for private travel abroad will come into effect from January bank-raises-maximum-limit-of-us-dollar-for-travellers-
2020, according to a notification, issued by the Bangladesh Bank (BB) on Thursday. 1564118498

https://www.bb.org.bd/mediaroom/circulars/fepd/jul252019fepd30e.pdf

Currently, the banks are allowed to release foreign exchange to an adult Bangladeshi national residing
in Bangladesh during a calendar year upto $5,000 or equivalent for travel to South Asian Association
for Regional Cooperation (SAARC) member countries and Myanmar, and $7,000 or equivalent for
travel to other counties.

"We've enhanced the foreign exchange quota for private travellers' considering travel expenses across
the world," a BB senior told the FE while explaining main objective of the notification.
Bangladesh Bank has waived the need for using the Online Transaction Authorisation Form (OTAF) Credit card restrictions withdrawn, The Business
for foreign payments through international credit cards, backtracking on its earlier decision to tighten Standard, 25 November, 2019,
online transactions abroad. https://tbsnews.net/economy/banking/bangladesh-bank-
backtracks-tightening-foreign-payment-through-credit-
The decision was taken to simplify online payments through credit cards, the central bank said in a card
circular issued on Sunday. The announcement was made after a meeting with banks and other
stakeholders held at Bangladesh Bank.
Previously, on November 14, Bangladesh Bank issued a circular making it mandatory for clients to
fill up an online transaction form for all foreign transactions using international credit cards.

It was intended to curb illegitimate transactions, but bankers criticised it as an anti-digitisation move
that would hinder the e-commerce industry of the country.

"To bring further simplification in online transactions, it has been decided to waive the OTAF
formalities for online payments abroad made through international credit cards," reads the circular.

However, the central bank advised banks to safeguard against illegal online payments made through
international credit cards, including online gambling, betting in casinos abroad, forex trading, buying
scrips in foreign stock exchanges, buying cryptocurrencies, lottery tickets, etc.

We welcome the revised decision because the OTAF is a complex process and would make it
difficult for both customers and banks to comply with, said Syed Mohammad Kamal, country
manager for Mastercard in Bangladesh.

However, boosting websites and Facebook page views using international credit cards is still
restricted.

According to the previous circular, international credit cardholders would have had to submit the
form to their banks mentioning their names, card numbers, beneficiary names, amount of foreign
currency being used and details of products and services to be purchased.

The banks would then activate the card, after due diligence. The foreign payment option would be
deactivated immediately after completing the transaction.

"Banks will have to verify the executed online transactions by checking them against the declaration
in the OTAF, and satisfy themselves regarding payment of applicable VAT, tax and duty for online
purchase of goods and services from abroad using international cards," read the previous circular
issued on November 14.

Sources said some people were also using their international cards for online gambling.

However, instead of taking proper technological measures such as restricting the misuse of cards
through introduction of purpose specific codes, the central bank directed that all international online
transactions be first permitted through the OTAF.

The move came after the discovery of some cardholders using their international credit cards to buy
shares abroad. Such capital transfer is illegal under existing regulations.
Illicit Financial Flows (IFF)—which means “money illegally earned, transferred, or used that crosses Problem Right, Solution Not, Tasneem Tayeb, The
borders”—have become a real global problem. It is a problem at scale: a PwC survey from 2018 Daily Star, November 23, 2019,
suggests that global money laundering transactions accounted for roughly USD 1 trillion to USD 2 https://www.thedailystar.net/opinion/closer-
trillion annually, or some 2 percent to 5 percent of global GDP. look/news/problem-right-solution-not-1830643

Illicit flow of money enables illegal trades, such as human trafficking, drug trafficking, prostitution,
terrorist funding and gambling, and these are some of the major problems that the international
community is trying hard to eradicate.

Bangladesh is also bearing the brunt of IFF. According to the United Nations Conference on Trade
and Development (Unctad)’s LDC (Least Developed Countries) Report 2019, released on November
20 this year, more than one third of Bangladwesh’s total tax revenue—36 percent to be exact—
illegally flew out of the country in 2015, which has predictably negatively affected the country’s tax-
GDP ratio.

Bangladesh is naturally trying hard as well to eliminate this problem—especially in the wake of being
hit by a wave of illegal casino and gambling business in recent times. The central bank has recently
issued a circular restricting the use of cross-boundary financial transactions through international
credit cards (read: international payments made from Bangladesh for online purchases using
international credit cards).

The Bangladesh Bank circular read, “International cards are, in general, intended to be used by
cardholders while on travel abroad... Cardholders shall, for online payment through ICs, submit
Online Transaction Authorisation Form (OTAF) to the ADs... On being satisfied about the legitimacy
of the transactions declared on OTAF duly filled in/submitted by cardholders on mobile application,
internet platform or in hardcopy, ADs will activate the respective ICs for international transaction,
and after execution of the transaction, the same shall be deactivated immediately.”
The middle ground between cash and credit card, Zina
Tasreen, The Daily Star, August 12, 2018,
https://www.thedailystar.net/news/supplements/cashless-
 throughout-the-year/the-middle-ground-between-cash-
and-credit-card-1619542

Payment instruments are also transitioning – from paper money and coins to their digital counterparts Towards a cash-lite Bangladesh, Pial Islam August 12,
that no longer require physical cash. How far has Bangladesh come in that journey towards a cash-lite 2018
society?
With the view to popularising plastic money in Bangladesh, both the global payment giants (Visa and Debit Card - The middle ground between cash and credit
MasterCard) are offering a host of discounts and cashbacks on their cards at point-of-sales -- and card, Zina Tasreen, The Daily Star, August 12, 2018
those with debits cards can avail them too. https://www.thedailystar.net/news/supplements/cashless-
throughout-the-year/the-middle-ground-between-cash-
Debit cards are the happy medium between credit cards and cash -- one gets the convenience of and-credit-card-1619542
carrying a card without the risk of running up debt as they limit spending to what is available in one's
current account.

And not only that, one simply does not have to worry about the drag of late fees, annual fees and
interest charge and the possibility of theft.

Anyone can steal cash from your wallet, but it is much harder to steal money from a debit card. If the
card is reported missing right after the incident, the bank will straightaway cancel it so nobody would
be able to use the card.

Having a debit card in one's pocket also means you don't have to stand in a queue in a bank branch to
withdraw cash; you simply stop by the nearest automated teller machine and take out as much as you
need. And while you are at the cash point, you can get a mini statement or do a balance inquiry.

With the view to popularising plastic money in Bangladesh, both the global payment giants are
offering a host of discounts and cashbacks on their cards at point-of-sales -- and those with debits
cards can avail them too.

For instance, Visa is offering up to 25 percent discounts for using their cards in a host of eating joints
and clothing stores.

It is not just at point-of-sales and cash point where the debit card is of use. One can pay bills,
recharge mobile number, buy train, bus and air tickets online, order food and do online shopping with
the debit card -- from the comfort of one's home.
“Whenever I feel like having food from a restaurant, I fire up the food delivery app and order away. I
need not worry if I have enough cash at home,” she added.

Total transactions through debit cards at point-of-sales hover between Tk 1,000 to Tk 1,500 crore and
ATM withdrawals Tk 20,000 to Tk 30,000 crore a quarter.

As of April, the total number of debit cards in circulation is 1.22 crore with a penetration of about 26
percent, according to the data from the Bangladesh Bank.
The central bank yesterday gave the green light to the rollout of contactless credit cards, ushering in Contactless credit cards near rollout, The Daily Star,
an exciting new era of payment system in Bangladesh. July 13, 2018
https://www.thedailystar.net/business/banking/contactles
Contactless cards allow payment just by waving at the point of sale terminal -- without the need for s-credit-cards-near-rollout-1604404
any signature or PIN verification.

The cards are embedded with the near field communication technology that allows secured payment.

The point-of-sale terminal would have a compatible reader where the card needs to be waved over for
authenticating transactions. The compatible merchant terminals can be identified by the contactless
logo.
The rising use of credit and debit cards though has attracted the crooked eyes of fraudsters, who have Credit card guidelines take a backseat
gotten busy trying to find ways to steal money off people through the cards. after cyber heist, Sajjadur Rahman, The Daily Star, April
04, 2016
At present, 52 of the 56 banks operating in Bangladesh issue credit cards. https://www.thedailystar.net/business/credit-card-
guidelines-take-backseat-after-cyber-heist-1203793
There are about six lakh active credit cards, with their numbers fast rising for the ease of convenience
they provide as a mode of payment and an instrument for withdrawing cash from automated teller
machines.

For instance, in December last year, total credit card transactions were upwards of Tk 594 crore, up
Tk 46.3 crore, or 8.5 percent, from the previous month. Point-of-sales terminals accounted for nearly
85 percent of the transaction amount.

The rising use of credit and debit cards though has attracted the crooked eyes of fraudsters, who have
gotten busy trying to find ways to steal money off people through the cards.

“The guidelines are very much necessary in the wake of the recent card frauds. We have given our
feedback on the draft guidelines more than six months ago, but nothing has happened yet,” said an
official of Eastern Bank. Bankers said the guidelines will help them set fees, charges and interest
rates on credit cards.

It will also help a card issuer to design and undertake marketing strategies for the growing plastic
money business, they said.

The draft guidelines stipulate that credit cards be issued only to citizens or residents of Bangladesh,
who are above 18 years of age on the date of the application and have the means to pay the bills.
Cardholders must have valid electronic tax identification number and a positive credit history.

The card issuer will solely be responsible for fulfilment of all Know Your Customer (KYC)
requirements and such documents shall be maintained under the safe custody.

There are also conditions on the issuance of supplementary credit cards.

The guidelines will not only reduce frauds but also help the banks structure credit card business, said
an official of City Bank, a market leader in this field.
Credit card users are likely to pay more interest than planned as new guidelines of the Bangladesh Credit card users to pay more than planned as
Bank go into effect from next year. Bangladesh Bank alters guidelines, bdnews24.com, 04
Aug 2017
There are allegations that the banks were levying high interest rates on credit cards in the absence of https://bdnews24.com/business/2017/08/03/credit-card-
central bank guidelines. users-to-pay-more-than-planned-as-bangladesh-bank-
changes-guidelines
Customers prefer credit cards to loans because it is easier to draw money or purchase products.

The banks also calculate interest on the entire credit taken through the card, not on the amount left
after paying instalments.

Interest is charged on the unpaid balance after the payment is due.

Ali Reza Iftekhar, CEO, Eastern Bank Ltd. Ali Reza Iftekhar Electronic Payment System In Bangladesh: Pros And
Cons, The Daily Star, March 08, 2015
There are so many positive things happening in last couple of years https://www.thedailystar.net/electronic-payment-system-
in-bangladesh-pros-and-cons-26717
but there are also some challenges that need to be discussed, fine

tuned and resolved to develop the electronic payment system further. Here is a short list of
challenges:

- Probable cyber crime

-Money laundering

-Perception of people

-Initial high cost for access

-Confidence and security of transaction

-Lack of knowledge of skills

-Attitude to a new product

- Minimising cash based transaction

Professor S A Chowdhury, Bangladesh Institute of Bank Management

Until 2009, our banking system had been following a paper based route. After that, with the
supportive role of Bangladesh Bank, we moved towards an automated banking system that is
compatible with international standards. In the provision of Bangladesh Bank's order, it is said under
7A (e) that Bangladesh Bank will have to promote, regulate and ensure a secured and efficient
payment system. From 2009 onwards Bangladesh Bank has issued as many as six sets of regulations
starting from automated cheque clearing, BFTN, electric fund transfer and, of late, mobile service. In
2013, they introduced agent banking system. In the meantime, both government and private banks
have invested a good amount of resources to make the system automated and updated both
horizontally and vertically. They have also taken financial inclusion projects to reach a wider
population.

TO BE CONTINUED
In traditional banking system, we had everything on paper so we used to rely heavily on the human E-Payment System and Internet Shopping in
resources to accomplish tasks of entries, clearing, deposits, document transfer, etc. on time and with Bangladesh, 12 August 2015,
accuracy. Fortunately, digitalization and use of Internet as well as intranet network had changed that http://bangladeshpayzaewallet-
dismal scenario rapidly in the western developed countries before decades. bd.blogspot.com/2015/08/e-payment-system-and-
internet-shopping-Bangladesh.html

The central bank yesterday instructed banks to ensure uninterrupted use of credit cards by their clients Ensure uninterrupted use of credit cards, The Daily Star,
to make payments for digital advertisements, after some lenders barred such activities by January 31, 2020,
misunderstanding a previous notice. https://www.thedailystar.net/business/news/ensure-
uninterrupted-use-credit-cards-1861489
The confusions started on November 14 last year, when the Bangladesh Bank -- with the view to
checking online casinos and gambling, illegal foreign exchange trading and purchase of financial
instruments issued in foreign stock markets, cryptocurrency and lottery tickets -- made the
submission of an online transaction authorisation form (OTAF) mandatory for every foreign payment.

“The latest central bank instruction is a clarification of the previous notice issued in November last
year,” a BB official told The Daily Star.

The lenders will also have to ensure that the credit cardholders clear the taxes during the purchase of
legitimate products and services, said the latest BB notice.

Clients will be barred from purchasing any illegal service and product through cards though.
The High Court has issued a rule questioning the legality of Bangladesh Bank's circular fixing the HC raises question on the legality of 9% interest rate,
interest rate on all loans, except for credit cards, at 9 percent. bdnews24.com, 03 Mar 2020
https://bdnews24.com/economy/2020/03/03/hc-raises-
question-on-the-legality-of-9-interest-rate
At the same time, I experienced this urge to wash hands every time I touched money. After all, paper How credit cards made life easier for me, Wara Karim
money harbours bacteria, viruses, and even traces of illegal drugs; so of course I needed to wash my The Daily Star, January 08, 2019
hands after I handled cash. But I assure you, I am not crazy, I only happen to have a mild obsession https://www.thedailystar.net/lifestyle/musings/news/how
with hygiene. -credit-cards-made-life-easier-me-1684165

I did not use my debit card much because they are not protected like credit cards. If a debit card is
ever compromised, the consequences could be severe.

But the problem with using credit cards is, you often spend without thinking. The total absence of
paper money sometimes makes you spend more than you need. Because cash is real and there is a
tangible value attached to it, we use it cautiously, unlike a credit card, where your balance becomes
visible only when you log into your bank account.

After I missed paying a credit card bill one time and overspent on a few occasions, I told myself that I
had to be disciplined if I wanted the comfort of a credit card in my life. So yes, credit cards have
taught me about financial discipline. It also saved me from bacteria and other pathogens that came
with paper money every day, not to mention the inconvenience of counting coins!
If the instrument used for the transaction is in digital form, such as cards or mobile money, it Towards a cash-lite Bangladesh, Pial Islam, The Daily
constitutes a digital transaction and contributes towards a cash-lite ecosystem. The payment Star, August 12, 2018
ecosystem of an economy is usually never static; shifts in technology and cultural factors drive the https://www.thedailystar.net/news/supplements/cashless-
economic and political gears that evolve the payment systems. throughout-the-year/digital-currency-transaction-in-
bangladesh-1619527
In the two years that passed, commendable progress has already been made, especially with respect to
NID integration and interoperability. Based on its June 2018 quick re- assessment, pi STRATEGY
estimates that the money flowing through electronic means in Bangladesh has increased from 11.83%
to nearly 18%. This is a significant rise in a short time. The two biggest contributors to this increase
are greater adoption of mobile financial services and the government's efforts in using electronic
payments in social safety net programs. pi STRATEGY forecasts indicate that Bangladesh will reach
the 33% mark by its 50th birthday, and cross the 50% threshold by 2025, if the current trends in
payment digitization continue.
Corporate executives and businessmen quite often get stupefied with phone calls from banks selling Credit card market still untapped, Sajjadur Rahman, The
credit cards. Daily Star, August 23, 2017
https://www.thedailystar.net/business/banking/credit-
It is a surprise for many that banks want to give credit willingly, even going to the doorstep of card-market-still-untapped-1452808
customers with the product.

Once you say you want it, the marketing crew of the banks will not leave you alone until you sign
along the dotted line. These loans are processed the fastest with minimum document requirements.

A monthly income of Tk 20,000 can give you credit worth at least Tk 50,000 on the card. The upper
limit may be as high as Tk 10 lakh.

Despite all the efforts, the product is yet to gain momentum in the country. As of May, there are less
than 10 lakh issued credit cards in the country, according to data from the Bangladesh Bank.

Bankers blame the stalemate on the limited purchasing power of consumers and a lack of
infrastructure. Some of them said the mandatory requirement of a tax identification number or TIN
also hamper the growth of the card.

Though per capita income has increased to about $1,600, the actual purchasing power or real
disposable income of people in Bangladesh is still very low, said Mashrur Arefin, additional
managing director of City Bank.

The credit card market will not achieve its expected level of growth unless the Bangladesh economy
graduates to the next level and appreciates cashless transactions, Arefin said.

The lack of infrastructure -- point-of-sales terminals and automated teller machines -- is a big barrier
to the expansion of the credit card market in Bangladesh, said Anwar Hossain, head of cards and
alternative delivery channels at Mutual Trust Bank.

“Credit card requires huge investments, from POS to ATMs and marketing costs. Moreover, it's a
collateral-free product, for which the risk is very high.”

The installation of a POS terminal costs Tk 30,000 and it goes as high as Tk 10 lakh to Tk 15 lakh for
an ATM.

Moreover, banks also have to offer incentives and discounts to attract credit card customers, the MTB
official said.

Nazeem A Chowdhury, head of consumer banking of Eastern Bank, a fast growing player in the
sector, attributed the slow growth to the non-negotiable requirement for TIN.

“Many customers cannot enjoy the facility because they don't have a TIN,” he added.

Shafiqul Alam, managing director of Jamuna Bank, said he is very surprised to see such a small
number of credit cards in Bangladesh.

Bankers also said issues related to tax act as a fear factor for card users who think that their expenses
will be tracked down by the tax administrator.

Many people refrain from taking credit cards due to the growing cyber crime, said Ahmed Kamal
Khan Chowdhury, managing director of Prime Bank.

“The benefits the credit card users enjoy can be given through debit cards also to encourage cashless
transactions. People do not feel the necessity of availing credit cards, as banks also sell many loan
products that the cards offer,” he said.

The slow growth can also be attributed to a fear of excessive charges and interest rates.

It is one of the costliest forms of borrowing, where any credit card outstanding balance could carry an
annual interest as high as 36 percent. The average interest rate for credit cards in the country is nearly
30 percent.

This makes it imperative for a user to clear the outstanding amount within the allocated timeframe.
Credit cards do not date back too far in Bangladesh.

SCB, after acquiring Grindlays Bank's Bangladesh operations, introduced the product two decades
ago.
In the first 5-6 years, it got a huge response from consumers because it reduced the risks of carrying
cash and fostered expensive purchases.
If you are the owner of a credit or a debit card, there is a non-negligible chance that you may be Credit Card fraud: What you need to know, Bangladesh
subject to fraud, like millions of other people around the world,reports agency. Starting in the 1980s, Post, Jul.31, 2019
there has been an impressive increase in the use of credit, debit and pre-paid cards internationally. https://www.bangladeshpost.net/posts/credit-card-fraud-
According to an October 2016 Nilson Report, in 2015 more than $31 trillion were generated what-you-need-to-know-8030
worldwide by these payment systems, up 7.3% from 2014.

In 2015, seven in eight purchases in Europe were made electronically. Thanks to new online money-
transfer systems, such as Paypal, and the spread of e-commerce around the world – including,
increasingly, in the developing world (which was slow to adopt online payments) – these trends are
expected to continue.
About 10 million bank clients are potentially easy victims of fraudulent charges to their debit and Plastic money not so safe, Inam Ahmed and Sajjadur
credit accounts because they are using the vulnerable magnetic stripe cards. Customers can lose their Rahman, The Daily Star, March 18, 2016
personal data and money because their banks have not bothered to adopt chip-embedded cards despite https://www.thedailystar.net/frontpage/plastic-money-
several warnings from the Bangladesh Bank. cards-unsafe-1043614

Making fraudulent transactions like these are easy for criminals because most banks are still issuing
magnetic stripe cards that are too easy to copy. The magnetic stripe on the back of the cards store the
cardholder account information and can easily be copied with an inexpensive card reader.

Cards are also being copied at ATM booths where criminals install skimming devices.

Bangladesh Bank had asked the banks to convert to chip cards, also known as EMV cards, at least
four times since September 2013. The last circular was issued on 8 March. Only Dutch Bangla Bank
has adopted EMV cards.

EMV stands for Europay, MasterCard, Visa (Europay is now part of MasterCard). Established in
1994 by those three founding members, now EMVCo is an international alliance for payment
standard by six card networks: Visa, MasterCard, American Express, Japan JCB, Discover, and China
UnionPay.

Each time a user inserts an EMV chip card into a chip-enabled terminal, a unique security code is
generated. This makes it extremely difficult for anyone to reuse the card information and card users
are protected.
No loan would cost more than 9 percent interest except credit card, a decision that can cheer up the Rate capped at 9% for all loans but credit card, The
businesses, but will cause havoc on some banks that have big exposure in small and medium Business Standard, April 16, 2020
enterprises (SMEs) and retail loans.
As credit cards are becoming more and more popular, the central bank thinks at least 12 banks High rates on credit cards draw regulator’s ire
charge too high on them and has asked them to explain why they do not follow a calibrated
ceiling set two years ago.
These banks have been charging more than 25 percent on their credit cards but the Bangladesh
Bank (BB) had set the maximum limit on interest rate at 5 percent over the highest interest rate
on a consumer loan by the individual banks.
For an instance, if the highest interest a bank charges is 10 percent, it cannot charge more than
15 percent on credit card.
However, these 12 banks have been charging more than 25 percent on their credit cards.
These banks are Eastern Bank, Midland Bank, Mutual Trust Bank, National Bank, NRB
Commercial Bank, Premier Bank, Standard Bank, Social Islami Bank, Southeast Bank, BRAC
Bank, Prime Bank and United Commercial Bank.
In spite of high rates of interest, the growth in credit card loans is higher than the private sector
credit growth. This is a reflection of the fact that people prefer cashless transaction, analysts
said.
Bangladesh Bank today asked lenders not to impose any interest on credit card bills due on April 1, No interest on credit card bills due April 1: BB, The
during the coronavirus pandemic. Daily Star, April 15, 2020
https://www.thedailystar.net/coronavirus-update-no-
If credit card bills are unpaid due to coronavirus and the ongoing shutdown, no interest can be interest-credit-card-bills-due-april-1-1893178
charged on it, the central bank said in a circular issued to the banks.

These instructions will be valid until May 31.

Any bank that has imposed any interest on a credit card holder during this time must make sure to
refund it, the notice added.
The central bank had earlier asked banks not to charge late payment fees on credit cards until May 31 BB asks banks not to charge
compound interest on unpaid credit
The Bangladesh Bank has asked banks not to charge compound interest on credit card bills until May card bills, The Business Standard, 15 April, 2020
31 as users are facing difficulties in paying their monthly bills on time amid the ongoing coronavirus https://tbsnews.net/economy/banking/bb-asks-banks-not-
crisis. charge-compound-interest-unpaid-credit-card-bills-
69676
The Bangladesh Bank has asked banks not to charge compound interest on credit card bills until May
31 as users are facing difficulties in paying their monthly bills on time amid the ongoing coronavirus
crisis.

"So, do not impose compound interest on bills on a daily or monthly basis from March 15 to May
31," Bangladesh Bank instructed lenders in the circular.

"Banks that have already charged compound interest on the unpaid monthly bills of March must
return the amount or adjust it to the next bill," it said.

The central bank had earlier asked banks not to charge late payment fees on credit cards until May 31.
The decision will help card users as some of them have already failed to pay their bills due to the
impacts of coronavirus on the economy and businesses.
According to the central bank data, till January, 59 banks issued 15.56 lakh credit cards and the
transactions in January stood at Tk1,357 crore.
Earlier, the central bank had asked banks not to classify borrowers as defaulters for their failure to
repay loans till June.
Every bank has a particular date set for monthly bill generation and also due payment dates. If any
client fails to pay a monthly bill on time, banks impose late payment fees and applicable interest from
the credit generation date.

The Bangladesh Bank on Wednesday asked banks not to charge monthly compound interest rate on Banks asked not to charge compound interest till May,
credit card bills till May 31 due to the coronavirus outbreak in the country. New Age, Apr 15,2020,
https://www.newagebd.net/article/104444/banks-asked-
The BB in a circular said that it was not acceptable that some of the banks were charging monthly not-to-charge-compound-interest-till-may
compound interest rate on unpaid credit bills when the country was passing through a crisis.

Against the backdrop, the banks have been asked not to charge monthly or daily compound interest
on unpaid credit card bills from March 15 to May 31, it said.

The banks, which have already charged or accrued compound interest on the customer’s credit card
bills from March 15, were asked to pay back to customers’ account, it said.
A few days after the fraud, Bangladesh Bank asked all banks to tighten security, including installing Credit, Debit Cards: Swindling on the rise, Sajjadur
anti-skimming devices at their ATM booths. It also instructed banks to make their cards chip-based Rahman, The Daily Star, August 13, 2017,
and phase out the magnetic-stripped cards. https://www.thedailystar.net/frontpage/credit-debit-
According to a recent survey conducted by the Bangladesh Institute of Bank Management (BIBM), cards-swindling-the-rise-1447729
67 percent ATMs have anti-skimming devices and 52 percent cards are EMV-compliant.
EMV stands for Europay, MasterCard, and Visa, and is a global standard for inter-operation of
integrated chip cards, which are used at POS terminals and ATMs for authenticating credit and debit
card transactions.
It said if an EMV-compliant card is used at a non-compliant ATM, the card holder could be
vulnerable to identity theft.

The study also shows that the most frequent types of fraudulent activity resulting from a cyber
intrusion reported by banks were ATM /Point-Of-Sale schemes (23%).

Bangladesh Bank is aware of the rising identity thefts, but it cannot do anything unless it gets report
from banks.

According to industry insiders, fraudsters make counterfeit cards with data skimmed off cards used at
the merchants. Most cards that get counterfeited are foreign.
Dutch-Bangla Bank's Abul Kashem said, “E-commerce transactions are becoming risky and
dangerous.”

The BBIM survey found that 30 percent banks have Online Payment Gateway Service for e-
commerce payment processing. As of December 31 last year, 928 online shop owners and merchants
are selling products using bank's payment gateways.

Some banks are charging their credit card holders much higher than the rate fixed by Bangladesh High rates on credit cards draw regulator’s ire, The
Bank. Business Standard, August 21, 2019,
As credit cards are becoming more and more popular, the central bank thinks at least 12 banks charge https://tbsnews.net/economy/high-rates-credit-cards-
too high on them and has asked them to explain why they do not follow a calibrated ceiling set two draw-regulators-ire
years ago.
These banks have been charging more than 25 percent on their credit cards but the Bangladesh Bank
(BB) had set the maximum limit on interest rate at 5 percent over the highest interest rate on a
consumer loan by the individual banks.
For an instance, if the highest interest a bank charges is 10 percent, it cannot charge more than 15
percent on credit card.
However, these 12 banks have been charging more than 25 percent on their credit cards.
Islami Bank Bangladesh yesterday launched shariah-based credit cards—Khidmah—first in the Islami Bank launches Khidmah credit card, The Daily
country, in an effort to provide customers with a wide range of payment services. Star, March 08, 2015
People can use a credit limit of Tk 50,000 with the Khidmah silver card, Tk 1 lakh with the gold card https://www.thedailystar.net/islami-bank-launches-
and Tk 2 lakh with platinum. khidmah-credit-card-30232
The bank will not charge any interest on cardholders' expenditure if unable to pay back in time.
Instead, it will charge a fee of Tk 500 for the silver card for a delay of one month, Tk 1,500 for gold
and Tk 2,000 for platinum.
Cardholders can also take supplementary cards for their family members free of cost.
Abul Quasem, deputy governor of Bangladesh Bank,
Credit cards are becoming popular in Bangladesh, as people do not want to carry cash, said Quasem.
The shariah-based credit card will bring a greater number of unbanked people into the banking
system, he added.
Islami Bank introduced the card for people with limited incomes to provide them with more
investment options, fulfil their daily needs and uplift their living standards, said Mohammad Abdul
Mannan, managing director of Islami Bank.
Khidmah cardholders will be able to make purchases from all VISA outlets, pay utility bills and take
e-ticketing services, Mannan said.
The bank, with a paid-up capital of Tk 1,464 crore, has invested the highest in the small and medium
enterprise sector in Bangladesh among the commercial banks, he said.
The bank has 90 lakh depositors, 6.5 lakh of whom are farmers, he added. The number of depositors
will reach one crore this year, he said.
Islami Bank has 298 ATM booths with 286 branches across the country.
“We launched the card to fulfil our customers' long time demand. It will develop our clients'
lifestyle,” said Nurul Islam Khalifa, deputy managing director of the bank.
Islami Bank Bangladesh Limited has introduced a new IT based Shariah compliant product under the Islami Bank Khidmah Card, Islami Bank Bangladesh
name of �Islami Bank Khidmah Card�. It has been carefully developed by Islamic financial Limited
expertise who ensure that our products are within the guidelines of Islamic Sha�riah. It operates on https://www.islamibankbd.com/advservices/khidmaCard
the 'Ujrah' concept which is based on a fixed fee structure, meaning that only fixed fee will be .php
charged to the customer. It gives the option to the customers of either paying the entire outstanding
amount or paying only a minimum amount of the outstanding balance in due date.

This Shariah compliant electronic product will make easy our every day buying and selling with
reducing risk of carrying physical cash. This new product will bring new business era for the bank
and accelerate the development in the banking sector through financial inclusion considering all
classes people of elite society.
Islami Bank Bangladesh Limited is a Joint Venture Public Limited Company engaged in commercial https://www.banksbd.org/ibbl/khidmah-card.html
banking business based on Islamic Shari'ah with 63.09% foreign shareholding having largest branch
network of total 294 Branches among the private sector Banks in Bangladesh. It was established on
the 13th March 1983 as the first Islamic Bank in the South East Asia. The mission of the bank is to
establish Islamic Banking through the introduction of a welfare oriented banking system and also
ensure equity and justice in the field of all economic activities, achieve balanced growth and
equitable development in through diversified investment operations particularly in the priority sectors
and less developed areas of the country. To encourage socio-economic upliftment and financial
services to the loss-income community particularly in the rural areas.

Islami Bank Khidmah Card is an IT based Shariah compliant product, which had been carefully developed by
Islamic financial expertise who ensure that our products are within the guidelines of Islamic Shariah. It operates on
the Ujrah concept which is based on a fixed fee structure, meaning that only fixed fee will be charged to the
customer. It gives the option to the customers of either paying the entire outstanding amount or paying only a
minimum amount of the outstanding balance in due date. This smart electronic card will make easy buying and
selling with reducing risk of carrying physical cash. Considering the customers demand, IBBL launghes 3 types of
Khidmah Cards - Silver, Gold and Platinum.

bKash, partnering with Visa, has introduced bill payment service for credit card holders who will be bKash allows bill payment for credit card holders, The
able to pay bills through their bKash accounts instead of going to bank. Business Standard, November 26, 2019
Currently, nine lakh customers are using credit cards of Visa, one of the leading payment https://tbsnews.net/economy/bkash-allows-bill-payment-
technologies in the world. credit-card-holders

bKash has recently enabled hundreds of thousands of Visa cardholders to pay credit card bills through bKash enables Visa credit card bill payment on its app,
its app. bdnews24.com, November 28, 2019
Users of locally issued Visa credit cards can now pay their monthly bills seamlessly from any bKash https://bdnews24.com/business/2019/11/28/bkash-
account. enables-visa-credit-card-bill-payment-on-its-app
The new service is aimed to remove the hassle of waiting in queues and chances of missing the
payment deadlines for customers.
It will also enable them to pay credit card bills at their own convenience and pay any bank’s Visa
credit card 24/7 from anywhere.
Eastern Bank Ltd will provide the technological support for the bill payment service and ensure
interconnectivity between Visa and bKash, according to a statemen
For credit card bill payment, a 1 percent charge will be applied on the customers.
Kamal Quadir, CEO of bKash, said, “Through this service, we aim at making the process of credit
card bill payment seamless for the customers. We are working hard to bring hassle-free and reliable
payment solutions for creating a cashless or less-cash society.”
Ali Reza Iftekhar, Managing Director and CEO of EBL, said, "Credit card bill payment through
bKash will help develop the eco-system fast where banks would have more card acquisition and
merchant points to bring opportunities of digital transaction across the country. This will create
convenience both for consumers and banks.”
TR Ramachandran, Group Country Manager, India and South Asia of Visa, said, “Busy schedules
and the challenges of offline payments often result in consumers missing their credit card bill
payment deadlines. We’re delighted to partner with bKash to enable bill
payments for credit cards through the bKash app. This gives millions of Visa cardholders the option
to pay digitally and at their convenience, further reducing the use of cash as well besides helping
them pay their credit card bills on time.”
The service has been launched to minimise customers’ visit to agent points bKash introduces add money service from Visa to
The country's largest mobile financial service provider bKash introduced add money service to its contain corona spread, The Business Standard, March
wallet from Visa card. The idea is to give customers relief from visiting agent points to reload 20, 2020
account amid growing concern of corona spread. https://tbsnews.net/companies/bkash-customers-allowed-
Now, customers can add money to bKash wallets from any Visa card for free. add-money-visa-card-60742
This Visa-to-bKash add money service wants to enable millions of customers to reload their bKash
balance using Visa debit and credit cards issued by any bank of Bangladesh.
"We introduced the service to minimise customers' visit to agent points to reload their accounts amid
corona crisis," said Kamal Quadir, chief executive officer of bKash.
"Limited banking activities amid lockdown in the city will hamper bKash transactions. This is
because the agents will have to deposit customers' money to the bank at the end of the day. So, bKash
hurriedly introduced the new money loading option last week, earlier than planned."
"The introduction of money loan from visa card will allow millions of cardholders to get bKash
service from home. This new money loan option will not help the poor, but a large segment will be
benefited, though."
Earlier, in March last year, bKash introduced a new service, enabling customers to transfer funds
instantly from Mastercard-branded debit, credit and prepaid cards issued by banks to bKash wallets.
The growth of average daily transaction value through the mobile financial service platform saw a
sharp rise of 5 percent in February from 3.58 percent in January, according to the Bangladesh Bank
data.
The total daily transaction value in February was Tk1,425 crore compared to Tk1,358 crore in
January.
Now, 15 banks are providing mobile financial services. The number of total registered accounts stood
at 8.18 crore in February. bKash had 3 crore plus registered clients as of December 2018.
Around 65 per cent of Bangladeshi consumers favour adop Majority BD consumers prefer newer digital payment
systems, The Financial Express, November 20, 2017
 https://thefinancialexpress.com.bd/print/majority-bd-
The ease of transion to digital forms of payments, as stated by 74 per cent of respondents, is the key drivers consumers-prefer-newer-digital-payment-systems-
of this high inclinaon towards going digital in spend, the study found. 1511151131

Bangladeshi consumers keen to adopt digital payment solutions: Visa survey https://bd.visa.com/about-visa/newsroom/press-
11/19/2017 releases/bangladeshi-consumers-keen-to-adopt-digital-
65% respondents likely to embrace new forms of payments while 74% find ease of transition driving payment-solutions-visa-survey.html
the digital adoption
Visa, the global leader in digital payments technology, today, announced an independent study,
conducted in collaboration with YouGov, examining the consumer sentiment around digital payments
in Bangladesh. The study observed high inclination amongst consumers (65%) in favour of adopting
newer modes of digital payments, indicating increased awareness, acceptance and adoption of digital
forms of payments among Bangladeshi consumers.
One of the factors that surfaced as the key drivers of this adoption include the ease of transition to
digital form factors of payments, as stated by 74% respondents. Amongst those who have used less-
cash currently than before, 54% state that the main reason to transit away from cash include –
convenience while 40% vouched for efficiency and speed of transaction offered by digital modes.

This survey was aimed at understanding the pulse of the Bangladeshi consumer and their views
towards the transition to a digital economy. The study indicates that amongst people for whom this
adoption was tough:

69% find insufficient modes of payments as a key barrier.

25% find that merchants they go to only accept cash.
25% are worried about the security of their transactions.
Significantly, over half of the consumers (55%) value security more than convenience when it comes
to making payments online. This is similar across the board - gender, ages, household income and
even education levels.

The survey, which was conducted across three countries – Bangladesh, India, and Sri Lanka - also
shows that millennials are more likely to use digital payments for everyday essentials like shopping at
supermarkets, online, department stores, fast food restaurants, taxis/cabs etc. than other generations.
The study also shows that the inclination towards embracing digital payments is higher amongst those
from a higher income household.
Unveiling the findings, TR Ramachandran, Group Country Manager, Visa, India & South Asia, said,
“More and more consumers are becoming digital natives, expecting a differentiated experience,
oriented towards convenience and practical usability. IoT, contactless payment technology, enabling
simplified, secure and faster eCommerce experience are some of the trends defining the next wave of
the future of payments. The study shows that while consumers are steadily embracing digital
payments, they are also seeking secure payment forms. At Visa, we constantly innovate and evolve to
provide seamless and secure digital payment options that will make transition to a digital economy a
frictionless and trusted process.”

According to the survey, cash usage continues show steady decline from over 52% last year, to 49%
currently, and is expected to come down further to around 46% over next 12 months. On the contrary,
preference for digital payment instruments such as cards continue to be on the rise, with over 32%
respondents opting for these currently as against 29% a year back.

While there is a visible shift in consumer spend pattern from cash to digital modes, there is also a
clear and willing adoption of this transition among consumers today. People across geographies
realise the benefits of adopting digital modes of payment and are open to experimenting with newer
form factor of payments. Some of the biggest challenges inhibiting this transition is the lack of
availability of the acceptance infrastructure and the promise of security. There is a slow but steady
change in the consumer mindset paving the way to a digitally enabled economy.
The study, which sampled people in India, Bangladesh and Sri Lanka this October, was conducted by
market researchers YouGov on behalf of Visa using active sampling, a method that focuses on
ensuring the quality of the sample, rather than the quantity of the respondents. The research probed
over 2000 people across the Indian Subcontinent. Commissioned by Visa, the online survey was
conducted independently by YouGov to find out the sentiment of the consumer adoption of digital
payments and user habits in the region.

E-commerce transactions through the banking channel increased by 54.26 per cent or Tk 508 crore in E-commerce transactions soar by 54pc in FY19, New
last fiscal year 2018-2019 compared with that in the previous fiscal year as customers became used to Age, October 28, 2019
shopping through e-commerce sites. https://www.newagebd.net/article/89003/e-commerce-
As per the Bangladesh Bank data released on Sunday, e-commerce in terms of value through the transactions-soar-by-54pc-in-fy19
banking channel increased to Tk 1,441.1 crore in FY19 from Tk 936.1 crore in FY18.
However, transactions through the banking channel constitute a minor part of the total e- commerce
transactions as the majority of e-commerce and f-commerce (facebook commerce) businesses and the
customers still prefer cash-on-delivery mode of payment.

In cash-on-delivery mode, e-commerce and f-commerce businesses receive cash upon delivery of products
ordered online.

In terms of volume, the number of e-commerce transactions increased by 58.61 per cent or 15.11 lakh
year-on-year in FY19.
Through the banking channel, 40.88 lakh transactions were executed in FY19 against 25.77 lakh
transactions in FY18.
E-Commerce Association of Bangladesh general secretary Abdul Wahed Tamal told New Age,
‘Transactions through e-commerce sites have been on the rise as customers are becoming used to
purchasing through such sites.’

Besides, growing use of cards and mobile financial services are among other reasons for the significant rise in
e-commerce transactions through the banking channel, he said.

E-commerce businesses are also offering discount on purchases for payment through cards or MFS thus
prompting the customers to pay through the banking channel, Tamal said.

He said that payment through the banking channel was highest 15 per cent to 20 per cent of the total
transactions through e-commerce businesses and the rest payments were accepted in cash.

Tamal hoped that the transactions through the banking channel would increase further. The e- CAB general
secretary, however, did not have any data on how much transactions of f-commerce were executed through the
banking channel.

A significant portion of the formal e-commerce transactions was placed from abroad.

The BB data showed 5.96 lakh transactions worth Tk 598.1 crore were placed from abroad in FY18 and the
figure increased to 9.64 lakh transactions worth Tk 771.5 crore in FY19.

Transactions in country's banking are turning cashless as the initiative has got huge popularity across Cashless bank transactions up, Shah Alam Nur, The
the country thanks to digitalization. Cashless transaction is increasing fast in the country as it is easier Asian Age, 08 September 2018
than others. https://dailyasianage.com/news/139048/cashless-bank-
In daily transactions including shopping and bill payment, customers don't carry money in their transactions-up
wallets as most of the payments have now become cashless. They transact through American Express
Card, ATM Card, Credit Card, Debit Card, Gift Card, Master Card, Travel Card, VISA Card and
mobile banking.
According to the central bank, there are over 9698 ATM booths of different banks across the country,
41000sale point terminals, 14 million plastic cards including debit, credit and prepaid. Several
countries in the country including local and foreign has issued 13 million debit cards, 1 million credit
cards and 160000prepaid cards.
Bangladesh Bank data also showed there are over 60 million mobile banking accounts across the
county. Through the mobile banking, daily average transactions worth Tk 10 billion are being taken
place.
Syed Mahbubur Rahman, Managing Director of Dhaka Bank Limted told The Asian Age that
cashless transactions are getting very popular as these are free from all hassles.
He said for a cashless transaction, the customer does not carry cash for shopping and other payment
including gas, electricity and other. Now e-commerce business is rising in the country.
A huge number of unemployed people are involved with e-commerce business. A good number of
transactions are being taken through cards or mobile banking. Sirajul Islam, executive director and
spokesman of Bangladesh Bank said the central bank has taken a number of initiatives to reduce cash
transactions.
The central bank is trying to introduce cashless transactions.He said, following the Bangladesh bank
initiative banks also want to reduce cash transactions. Banks are taking various promotional activities
in card-based transactions.