bKash frees charge for bulk users, doubles it for higher slabs

Mobile financial service provider bKash will not charge any fees for sending up to Tk25,000 or less per month to five favourite numbers from now on.

However, the customer will be charged Tk5 each time for transferring the same amount of money to non-favourite numbers.

Besides, bKash has increased its charge to Tk10, from Tk5, for sending an amount of above Tk25,000 or higher slabs.

bKash said the new charge has already been effective from this month.

Although the charge for sending money has been hiked considering the business cost, it has only touched well-to-do customers, claimed the mobile financial service provider while the charge is rather free for low income groups.

The charge for any transaction above Tk50,000 per month (excluding favourite numbers) is Tk10 per transaction. Earlier, it was Tk5.

Asked about the increase in fund transfer charges, Shamsuddin Haider Dalim, head of Public Relations, bKash, said they have been increased considering the business cost. However, those that will make big transactions will be able to afford it.

90% of bKash customers send money to 3-4 numbers below Tk25,000 per month. In this case, the cost of sending money to 5 favourite numbers has been made free, the official said, adding that low-income customers have been given the opportunity to send money free of cost.

In response to a question, he said sending money through bKash has never been free. So is with other operators. BKash has instead reduced costs for low-income customers through its two mediums (USSD and App).

Meanwhile, another mobile banking service provider Nagad claims no charge for sending money through its app. However, if anyone wants to send via USSD, they are charged Tk5 per transaction.

Asked about this, Nagad CEO Rahel Ahmed told The Business Standard, "We have no limit in the case of sending money."

Any amount in the app is free. On the other hand, sending any amount of money through USSD costs only Tk5, he said.

Rahel observes that customers always rush to where they will enjoy a reduced cost.

Noting that the number of their subscribers is increasing exponentially, he said at present the number of subscribers is rising by two lakh every day.

Nagad is getting good response as it reduces the cost as well as simplifies the process of becoming a customer, added the CEO.

Meanwhile, Rocket, another mobile financial service provider, does not charge customers for sending money through app and USSD.

However, if products are different, the percentage of charge per transaction is Tk0.9. In this case, the recipient of money will foot the bill.

According to an update on mobile banking released by the central bank on Sunday, the number of active subscribers increased from January to February, but monthly transactions declined.

From January to February, the number of active subscribers increased by 5.6% to 3.42 crore while daily turnover increased by 6% to Tk1,966 crore.

However, the total turnover during the month of February stood at Tk55,059 crore, down by 3.8% from January.

Meanwhile, the amount of cash-in and cash-out has also decreased in February compared to that in January.

The amount of utility bills and payment for purchases has also decreased. However, the government payment has gone up.