Internet banking transactions in Bangladesh surge by 61 per cent

A file photo shows the Bangladesh Bank headquarters in the capital Dhaka. — New Age photo

Internet banking transactions in Bangladesh surged by 61.8 per cent in October compared to the previous month, driven by increasing adoption of digital technologies for financial activities.

According to Bangladesh Bank data, internet banking transaction soared to record Tk 78,863 crore in October from Tk 48,716 crore in September.

The number of transactions crossed 1 crore in November for the first time.

Bankers said that the internet banking had been expending due to the rising number of tech-savvy individuals, particularly the younger generation, who prefer using digital platforms for their banking needs.

Standard Chartered was the pioneer of internet banking in Bangladesh, introducing the concept two decades ago. Since then, internet banking has experienced rapid growth in the country, providing users with significant ease in both personal and business transactions.

The widespread availability of smartphones and the expanding internet user base have further facilitated the adoption of internet banking across the country.

Internet banking, also known as online banking or e-banking, is a digital banking service that allows customers to conduct financial transactions over the internet through a bank’s website or mobile app.

It offers a wide range of services, including checking account balances, transferring funds between accounts, paying bills and accessing account statements, among others.

Internet banking provides convenience and flexibility to customers, as they can perform banking activities from anywhere with internet access, at any time of the day or night, without having to visit a physical bank branch.

Internet banking saves time for both customers and banks by reducing the need for manual paperwork and in-person transactions. This efficiency is attractive to customers who value their time and seek quick and hassle-free banking services.

The number of internet banking customers in Bangladesh has nearly tripled from March 2020 to October 2023.

In March 2020, amidst the global pandemic, the country had 26.49 lakh internet banking customers, which grew by over 203 per cent to reach 80 lakh by October 2023.

Real-time gross settlement system of the central bank recorded transactions worth Tk 5.18 lakh crore in October, marking an increase of over 7 per cent from Tk 4.8 lakh crore in September.

Introduced in 2015 to facilitate real-time settlement of high-value time-critical payments, the RTGS system has been widely adopted by banks, corporates and individual customers for instant payment settlements.

For individual customers, the maximum value per transaction through internet banking is Tk 3 lakh, with a maximum frequency of 10 times a day and a daily limit of Tk 10 lakh.

For corporate customers, the transaction limit is Tk 5 lakh per transaction, with a maximum frequency of 20 times and a total daily limit of Tk 25 lakh.