Transactions through debit, credit and prepaid cards dipped to a 27-month low in August this year, owing to a lack of cash in ATM booths amidst security concerns and people curtailing spending for political uncertainties.

Overall transactions through the cards in August amounted to Tk 33,980 crore, the lowest since June 2022, according to latest data from the Bangladesh Bank.

In June 2022, Tk 37,531 crore was transacted through debit, credit and prepaid cards.

Overall transactions through the cards in August this year was a drop of 16.21 percent from that in July 2024.

In case of just credit cards, Tk 2,556 crore was transacted in August, which is an 18-month low, meaning since March 2023, when it had amounted to Tk 2,652 crore.

In comparison to July this year, credit card transactions in August fell by 3.67 percent.

In case of just debit cards, the transactions fell by 17.2 percent to Tk 31,027 crore compared to that in July this year.

Besides, August's debit card transactions were the lowest in the last 27 months, meaning since June 2022, when Tk 34,744 crore was transacted using this type of card.

Prepaid cardholders transacted Tk 397 crore in August this year, which was 6.36 percent lower compared to that in the preceding month.

Despite the fall in the amount of transactions, the number of debit, credit and prepaid cards issued in August rose 0.92 percent, 0.21 percent and 6.13 percent respectively from that in the previous month.

As of August, the number of debit, credit and prepaid cards stood at 37.78 million, 2.53 million and 6.94 million respectively.

July and August saw some of the lowest transactions ever recorded through credit cards, said Md Mahiul Islam, head of retail banking at BRAC Bank.

Due to political uncertainties, people curtailed their spendings, he said.

On the occasion of Durga Puja, credit card transactions are currently increasing, said Islam.

Moreover, people will start to travel more while the number of wedding events will increase during the coming winter season, so credit card spending will subsequently rise, he added.

Meanwhile, according to industry insiders, the transactions through debit cards fell by a big margin due to a lack of cash in ATM booths.

Banks were unwilling to transport cash to replenish the booths over security concerns for the absence of law enforcers amidst an uprising that led to the fall of Awami League government on August 5.

Security concerns deepened the following day, when police officials embarked on a work abstention, citing reports of attacks on police stations and mob beatings.

At the same time, private companies engaged in the transportation of cash and valuables had refrained from providing services.