Nagad hikes cash-out charges, adds new fees

Mobile financial service provider Nagad has announced an increase in charges for cash-outs while introducing new fees for fund transfers. 

The rates and fees came into effect from September 8, according to a company official.

Nagad has introduced a Tk 5 fee for money sent through its app, which was previously offered free of charge.

Additionally, it has raised the cash-out charge from Tk 11.49 to Tk 12.50 per Tk 1,000 for mobile app transactions and from Tk 14.94 to Tk 15 for those using the USSD code service.

Furthermore, Nagad has implemented a 1.50 percent fee per Tk 1,000 transfers to banks.

In a statement, Nagad explained that these adjustments were part of a long-term business strategy aimed at improving the customer experience and promoting digital services.

Nagad said the adjustments were part of a long-term business strategy aimed at improving the customer experience and promoting digital services

"Nagad always works to ensure improved customer service at the lowest cost," it said in a statement yesterday.

From the outset, it charged the lowest when compared to existing market rates.

Nevertheless, Nagad still maintains the market's lowest charges for cash-out, sending money or any other service. Furthermore, most of the services are still free of charge like before, the statement added.

The new charge comes less than six months after Nagad Managing Director Tanvir A Mishuk told The Daily Star that they would offer free-of-charge cash withdrawal services to its account-holders by this year in order to accelerate Bangladesh's financial inclusion drive.

"The free-of-charge service for cash-outs will not negatively impact earnings. Rather, it will help expand our business to a large extent," he said in March.

bKash, the nation's top MFS operator in terms of transaction volume and amount, allows customers to send money to five favourite (Priyo) numbers without any charges. It also does not charge if the amount sent from its app is less than Tk 100.

It charges Tk 14.90 per Tk 1,000 cash-out for up to Tk 25,000 per month from a 'Priyo Agent'. If someone withdraws more than Tk 25,000 in a month from a Priyo Agent, the charge is Tk 18.50 per thousand, the same rate as cashing out from a normal agent.

According to bKash, 95 percent of customers do not cash out more than Tk 25,000 per month.

The nation's third-largest operator, Rocket, offers Tk 9 cash-out charge per thousand withdrawn from Dutch-Bangla Bank's ATM booths, making it the lowest cash-out charge among MFS providers. However, its customers have to pay Tk 18 when cashing out from agents.

About 90 percent of MFS transactions in Bangladesh take place through the three operators, according to industry insiders.