Digital transactions rise, still 72pc of transactions cash-based: BB

Business Report :

Although digital transactions in Bangladesh increased moderately in 2024, cash and cheques continues to hold a strong grip on country’s payment landscape, accounting for nearly three- fourth of all transaction particularly in rural areas.

 Digital transaction volumes rose from 36.67 crore to 40.31 crore, while their total value increased from Tk 75,140 crore to Tk 76,340 crore, between December 2023 and December 2024. By contrast, more than 72 percent of all monetary transactions in the country are still conducted in cash with volumes rising from 34.62 crore to 45.49 crore and values from Tk 1.85 lakh crore to Tk 1.95 lakh crore, according to the Bangladesh Payment Systems Report 2024 by Bangladesh Bank.

Experts said that while the central bank’s campaign for a cashless society is well-intentioned and necessary for economic modernisation, the dominance of the informal economy, where cash transactions are more common, remains a major challenge.

The report noted that people mostly used digital channels for small- and medium-value payments, whereas large-value transactions remained concentrated in traditional modes.

The highest digital share was recorded in April and June (56 percent), driven by Eid-related spending, social safety net disbursements, and annual sales campaigns. December saw the lowest share (47 percent) amid year-end settlements and cash withdrawals.

During 2024, around 1.04 crore instruments worth Tk 11.75 lakh crore were cleared through the Bangladesh Automated Cheque Processing System (BACPS), which continued to play a key role in supporting high-volume, paper-based transactions.

The report said the BD-RTGS (Real Time Gross Settlement) system underwent major upgrades, including the adoption of ISO 20022 messaging standards, revised time schedules for local and foreign currency settlements, and preparations for potential round-the-clock operations.
Meanwhile, Bangladesh Bank has taken several steps to promote cashless payments, including awareness campaigns across districts. Businesses are now required to enable QR code-based payments for trade licence issuance or renewal.
Two years ago, the central bank launched the Bangla QR, a national QR code standard for retail transactions. Currently, 43 banks, five mobile financial service (MFS) providers, and three payment service providers (PSPs) are part of the system.
The government aims to make all transactions cashless by 2031 as part of its Smart Bangladesh 2041 vision, which rests on four pillars – Smart Citizens, Smart Economy, Smart Government, and Smart Society.