Cash transactions incur annual losses of Tk 2,080 million

In Bangladesh, about Tk 2,080 million is lost every year in cash transactions or money management. According to Bangladesh Bank, despite the expansion of digital transactions in the country, there is still a lot of dependence on cash, which is causing this huge loss.

A report by research institute Policy Exchange Bangladesh said that digital transactions will not only reduce costs, but also increase the transparency and growth of the economy. However, for this, it is important to reduce the cash-out costs of mobile financial services (MFS). Cash-out costs in Bangladesh are much higher than in neighboring India, Nepal, and Bhutan.

According to the report, about 45 percent of the country's adults (about 30 million) are still outside banking facilities. However, the 2.12 million users of bKash and 4.5 million users of Nagad are proving how technology can reach the rural masses. Currently, 68 percent of the country's population lives in villages, where mobile money is especially empowering women and low-income families.

There are currently 332 companies operating in the fintech sector in Bangladesh. Of these, 26 have already received investment. So far, the sector has received $284 million in investment. As of January 2025, the country had 188.4 million mobile subscribers, 130 million internet users, and 115.5 million smartphone users.

The government has set a target of digitizing 75 percent of retail transactions by 2027. It also plans to create a completely cashless economy by 2031. International studies have shown that if digital payments are expanded, Bangladesh's GDP will increase by 1.7 percent annually, worth about Tk 50,058 billion.

Experts believe that having a record of every transaction in digital finance will ensure transparency in government subsidies, pensions, and social security, and reduce corruption and tax evasion. However, they have emphasized the need for high-speed internet, uninterrupted power, increasing digital literacy, and reducing MFS cash-out costs to a reasonable level to reduce cash dependence.