People face cash shortages, withdrawal limits at ATM booths

Cash shortages and withdrawal limits at ATM booths of some banks have frustrated customers ahead of Eid, despite Bangladesh Bank's instructions to ensure uninterrupted services during the holiday period.

Customers in several areas of Dhaka on Sunday and Monday found ATM services of many banks — particularly weaker and troubled ones — unavailable. Some financially stronger banks had also imposed withdrawal limits, they said.

Aminul Islam, a resident of Basabo, went to withdraw cash using a Standard Chartered card at an Islami Bank Bangladesh PLC booth in the area but failed.

After visiting several other booths without success, he eventually withdrew cash from a Standard Chartered ATM, which is now rare to find after the bank shut down most of its ATMs in recent years.

Standard Chartered Bangladesh told The Daily Star in a written statement that its ATMs are positioned at strategic locations across the city.

"During the Eid holidays, our ATM network will maintain sufficient cash in its machines so that our account holders can withdraw as much cash as they need," it said.

The bank added that customers can use any NPSB-enabled ATM of other banks, but Bangladesh Bank imposes withdrawal limits that all banks must follow.

Rukaiya Islam of Shantinagar faced a similar problem. On Sunday, she visited several booths without success and eventually had to withdraw cash from a bank branch.

Customers have also reported difficulty withdrawing cash using cards issued by other banks at booths of Al-Arafah Islami Bank, Padma Bank, City Bank, AB Bank, Commerce Bank, Islami Bank Bangladesh, and National Bank.

Five Islamic banks — Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank — are undergoing a merger due to poor financial health, with branch operations reportedly becoming nearly dysfunctional.

Md Altaf Hossain, managing director (current in-charge) of Islami Bank Bangladesh, told The Daily Star that the bank was prioritising its own customers because cardholders from other banks were heavily using its ATMs.

Even so, the bank was struggling to meet its own customers' needs ahead of Eid-ul-Azha, he said.

An unnamed Islami Bank official said the bank had not been receiving sufficient cash from the central bank.

"Yesterday, we sought Tk 280 crore in cash from the central bank but received only Tk 120 crore," the official said.

Mati Ul Hasan, managing director of Mercantile Bank, said all cardholders could withdraw cash from its ATMs, but customers of other banks were limited to three transactions a day. Its booths had adequate cash during Eid, he added.

On May 21, Bangladesh Bank instructed all scheduled banks, mobile financial service providers, payment service providers, and payment system operators to keep banking and digital transaction systems operational during Eid-ul-Azha.

Arief Hossain Khan, executive director and spokesperson for Bangladesh Bank, said there were no restrictions on cash withdrawals.

"Banks that fail to provide proper ATM services or cannot ensure cash availability should shut down their ATM services," he said.