Cash recycling machines spreading across the country

Banks in Bangladesh are increasingly installing cash recycling machines (CRMs) throughout the country so that clients can withdraw or deposit their funds from the same spot.

CRMs increase the scope for conducting banking activities as cash deposit machines only facilitate deposits while automated teller machines are solely for withdrawals.

The number of CRMs in operation stood at 2,668 as of this January, up 111 per cent year-on-year, shows data from Bangladesh Bank.

Total transactions through CRMs grew 70 per cent year-on-year to Tk 6,380 crore at the same time.

Banks in Bangladesh started installing CRMs from 2017.

Since then, CRMs have been installed at a faster pace as it offers a number of banking services, cutting customers' reliance on branches and giving them more freedom to carry out financial transactions whenever they want as the machines operate round the clock.

A CRM accepts cash, counts the notes, authenticates them, and credits the amount to accounts on a real-time basis, helping banks do away with the manual labour needed to provide the service.

The technology is also allowing users to deposit and transfer cash to other accounts.

Besides, CRMs help banks manage cash in an efficient manner as the notes deposited can be used for withdrawals by clients. As a result, banks do not need to frequently inject cash into CRMs.

In addition, the technology provides lenders with the scope to reduce costs by facilitating multiple services to clients through a single platform.

The tool rapidly gained importance during the coronavirus pandemic as banks discouraged clients from engaging in physical visits to branch offices at the time.

The number of CRMs will increase manifold within the next couple of years as many banks have taken initiatives to set up the digital tool.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said each CRM performs almost like a bank as it provides different types of support to clients.

"Banks are now installing CRMs in areas where they have no branch," he added.

Rahman went on to say that setting up CRMs is helping banks reduce their cost of doing business significantly, which is why they will install more in the days ahead.