EMTS: The cheapest way to send money across Bangladesh

Many may be surprised to learn that the most cost-effective way to transfer money from one place to another without a bank is through the post office.

The Bangladesh Postal Department provides this facility, named the Electronic Money Transfer Service (EMTS), widely known as a digital money order.

EMTS keeps a commission or cost of Tk 5 per thousand, meaning an individual can send Tk 50,000 taka for a cost of just Tk 250.

The process is simplified by the fact that customers, irrespective of their address, can send and withdraw money from any post office in the country.

The Directorate of Posts took a significant step towards modernising its financial services by inaugurating the service on March 26, 2010.

After necessary training, the service was launched on May 5, 2010.

This system has allowed rapid and secure transfer of funds across the country.

Al Mahbub, additional postmaster general of central circle, Dhaka, said the EMTS provides a way to send money at a low cost, with the caveat that deposits or withdrawals cannot be made after 5:00pm.

The fact that the post office is closed on Friday and Saturday also poses a barrier to popularity.

But in some aspects, the EMTS bests modern technology.

"Fortunately, a sender can freeze the transferred money and get a refund if he wants, which is not possible through mobile financial services," he added.

Speaking about security issues, Farid Ahmed, postmaster general of Metropolitan Circle, Dhaka said: "The security of the money is fully ensured as a PIN is provided to the sender and receiver. The post office also gives a receipt to confirm the transaction from both sides.

"If there is any complaint, it is solved then and there."

A proposal to make the EMTS available through an app has been placed to the Ministry of Finance, he added.

Currently, the EMTS service is available in 2,752 post offices across Bangladesh.

According to official data, from 2010 to 2023, more than 27,700,000 transactions, amounting to Tk 7,677 crore, were made through the EMTS.

Notably, during this period, the Directorate of Posts made an income of about Tk 90 crore.

Md Moneruzzaman, programmer of the central ICT cell of the directorate and desk officer of EMTS, said: "Generally, due to a weak financial infrastructure, there are no banks in many parts of the country. But a post office can be found in most places, even if it is not in the best shape. The only hope for marginalised people looking to send money is the post office. Hence, unbanked and rural communities mostly avail and still avail this service."

Increasing the budget for the Directorate of Posts and advancing ICT infrastructure can make the EMTS service more functional and efficient, he added.