Banks see cash withdrawal surge for Eid

Bank branches in Dhaka experienced a massive surge in cash withdrawals and other banking transactions yesterday, the last working day before a 10-day Eid-ul-Azha holiday. 

Despite the availability of digital banking services and ATM booths, clients formed long queues in front of bank counters to withdraw cash.

Bank officials said transactions increased by 25 percent compared to regular working days.

Eid-ul-Azha, the second-biggest religious festival for Muslims in Bangladesh after Eid-ul-Fitr, will be celebrated on June 7.

Banks will remain closed during the government-declared holidays until June 14.

However, branches of scheduled banks in industrial areas will remain open on June 5, 11, and 12 to facilitate the payment of wages and bonuses to garment workers and export-import activities.

"I want to withdraw a large amount of money to buy cattle. That's why I came to the branch instead of using ATM booths," said Razibul Islam, who was standing in a queue at the Motijheel branch of state-run Sonali Bank.

"Sometimes, technical problems arise at ATM booths during the Eid holidays, so I preferred withdrawing a large amount of cash from the branch all at once," he added.

During visits to bank branches in Motijheel and Paltan in the morning, long queues were seen at cash counters.

Many people also visited banks to collect new banknotes that have been redesigned, but due to supplies being limited, many customers were unable to obtain them.

"Many people come to collect the newly designed notes, but the supply is so limited that we are not able to provide them," said a senior official at the corporate branch of Rupali Bank.

"People are preparing to go to their hometowns for Eid and to buy sacrificial animals, so they are withdrawing money and collecting new notes," he said.

Bangladesh Bank released redesigned Tk 20, Tk 50, and Tk 1,000 notes into circulation from June 1.

As in previous years, the demand for fresh currency typically surges ahead of Eid, when people present crisp notes as gifts.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said overall there was no shortage of liquidity or cash in the banking sector, although some banks are experiencing cash crises due to poor financial health and other factors.

On being contacted, Arief Hossain Khan, executive director and spokesperson of the central bank, said the regulator was promoting digital transactions and discouraging the use of cash in cattle markets.

Regarding the new notes, he said, "This time, only the Tk 20, Tk 50, and Tk 1,000 notes were introduced in the market before Eid."

He added that printing of the redesigned Tk 5, Tk 10, Tk 100, Tk 200, and Tk 500 notes is expected to begin after Eid.