Business Desk : Sources say the volume of internet-banking transactions is growing fast as huge people, particularly tech-savvy young generation, are using the digital platform to carry out financial activities.
According to statistics available with Bangladesh Bank (BB), the volume of transactions through internet banking was Tk 235.48 billion in July 2022 and it continued rising to reach Tk 275.59 billion in December.
The uptrend in the turnover of internet banking continues with the monthly transactions hitting Tk 462.43 billion in July 2023 — up by around 100 per cent from the corresponding period of last year.
The number of internet-banking customers increased to a record 7.44 million in July 2023 in a rise from 5.47 million in July 2022 and 6.25 million in December 2022, according to the most recent figures, reports Financial Express.
Internet banking, also known as online banking, allows users to conduct financial transactions over the internet and provides consumers with practically every service formerly available only through a local branch, such as deposits, transfers, and bill payments.
Pioneered in Bangladesh by Standard Chartered two decades ago, internet banking has grown at a faster pace in the country ever since, giving user much ease of living and business.
Seeking anonymity, a BB official said the growth in online-banking transactions is remarkable in recent months as clients feel more comfort using online-banking windows.
“The expanding number of internet users and the availability of smartphones aided the widespread adoption of internet banking,” he added on the merits of digital transition in finance.
Riding on the growing trend in online transactions, the central bank increased the interbank daily online-transaction limit in September 2020, including a fivefold increase in institutional customers.
The ceiling for institutional users has been increased. The limit to a single transaction has also been raised to Tk 100,000 from Tk 50,000, and consumers can now settle a maximum of 10 transactions a day, up from five previously.
The daily transaction limit for institutional users has been established at Tk 1.0 million, with a maximum of 20 transactions per day utilizing online banking, while the highest limit for a single transaction is Tk 200,000.
The central banker said IBFT or Internet Banking Fund Transfer is executed through Bangladesh Bank’s National Payment Switch Bangladesh (NPSB).
Bangladesh Real Time Gross Settlement and Bangladesh Electronic Funds Transfer Network of Bangladesh Bank have also provided a boost to internet banking.
“Customers can instantly settle transactions of large volumes through RTGS while the BEFTN helps them carry out retail transactions within a day,” the central banker said.
Wishing not to be quoted by name, the head of Digital Banking in a commercial bank told the FE that customers who use internet-banking services just once start to recommend it to their friends and family.
Bankers have said internet banking is a safe and convenient way to carry out banking activities while maintaining physical distancing.
The bank executive said, “The volume of IBFT went up significantly in recent months, which accounts for more than half the entire internet- banking transactions.”
However, banks have offered a variety of products, including mobile applications, in order to rope more users in their online-banking systems.
Contacted, managing director and chief executive officer of Modhumoti Bank Limited Md. Shafiul Azam said the main benefit of internet banking is that customers do not need to come to the counters physically to do banking.
He billed the growth in online-banking transactions in the bank as remarkable. It is probably more than 100 per cent.
“We made internet-banking transactions using our Go-Smart App free.
We’re now intensifying our efforts to make it more convenient to our valued customers offering more products,” he adds about their plan of expansion on the monetary superhighway.