ATM booths run dry on first day of weeklong holiday

Many ATM (Automated Teller Machine) booths in Dhaka either ran out of cash or went out of service yesterday, the first day of the weeklong Eid holiday, raising fears of a worsening cash crunch during the festival period.

Several customers said the shortage began to emerge on Sunday, while many ATMs of specific banks were refusing cash withdrawals by customers of other commercial lenders.

Bankers said the restrictions came ahead of Eid-ul-Azha, when transactions rise sharply at cattle markets, as banks prioritised their own customers.

They also claimed that they had not received enough cash from the Bangladesh Bank, which tightened the situation further.

Demand for cash rises sharply every year before Eid, as customers withdraw larger amounts for shopping, buying sacrificial animals and travelling to their village homes.

At the same time, prolonged holidays leave many banks unable to replenish ATM booths because of manpower shortages. Security and transport issues also make cash replenishment difficult. As a result, many booths run out of money quickly.

Earlier, the central bank instructed all commercial banks to ensure adequate cash supply at their ATM booths during the Eid holiday.

However, customers in several parts of Dhaka said ATM services of many banks, especially weaker and troubled lenders, were unavailable. They also said some financially stronger banks had imposed withdrawal limits.

Rukaiya Islam, a resident of Shantinagar, visited several booths on Sunday to withdraw cash but failed. She eventually withdrew money from a bank branch.

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

He then tried several other booths without success and eventually searched for a Standard Chartered ATM, which has become harder to find after the bank shut down most of its ATMs in recent years.

He finally found one in Karwan Bazar and managed to withdraw cash.

Contacted, Standard Chartered Bangladesh said that its ATMs were 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 in a written statement.

The bank added that customers could also use any NPSB-enabled ATM of other banks.

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 the needs of its own customers ahead of Eid-ul-Azha, he said.

Speaking on condition of anonymity, an Islami Bank official said the bank had not been receiving sufficient cash from the central bank.

“Yesterday [Sunday], 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, although customers of other banks were limited to three transactions a day.

He added that Mercantile Bank booths had adequate cash supplies during Eid.

On May 21, the Bangladesh Bank in its instruction to scheduled banks, mobile financial service providers, payment service providers and payment system operators asked for keeping banking and digital transaction systems operational during Eid-ul-Azha.

Arief Hossain Khan, executive director and spokesperson for the 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.