Cash shortages reported at Dutch-Bangla Bank ATMs; central bank cash supply blamed

Customers of Dutch-Bangla Bank PLC have been unable to withdraw the cash they need from the bank's ATM booths in various parts of the capital. However, several senior bank officials said there is no shortage of electronic or digital money within the bank.

According to bank officials, the temporary cash shortage has arisen primarily because the bank has not received an adequate supply of physical currency from Bangladesh Bank.

As of around 11:40pm yesterday (10 June), one of the three booths near Bijoy Sarani were found closed while two other ATMs did not have cash in them.

A customer at the closed booth said he had checked several booths on his way from Gulshan and none had cash.

Meanwhile, an employee of The Business Standard was able to withdraw cash only at the booth near the IDB Bhaban after trying several others.

The situation has raised concerns among customers, particularly at a time when clients of Islami Bank Bangladesh PLC have also been facing difficulties withdrawing funds. Many customers have taken to social media to express frustration over being unable to access cash from ATM booths.

However, the bank's Managing Director Md Ahteshamul Haque Khan told TBS, "We are not facing any liquidity crisis or technical problem."

He did not confirm whether the bank was receiving less cash from Bangladesh Bank.

A customer named Mohsin Hossain wrote on social media, "I could not get cash from a Dutch-Bangla Bank ATM in the morning. I went to the market empty-handed. In the end, I bought fish worth Tk400 and sent the fish seller Tk1,530 through bKash. I then collected Tk1,100 in cash from him and completed the rest of my shopping."

Another customer named Maruf wrote that he had tried to withdraw cash from ATMs in Banasree, Rampura and Aftabnagar on Sunday night but found no money available. 

Despite the shortage of physical cash at ATMs, the bank's digital and online transactions remain fully operational. An official named Jihad Hossain said he had successfully transferred money from his account to a relative through the bank's mobile application without any difficulty. Customers visiting several branches have also continued to send funds to accounts at other banks without any reported disruptions.

A senior Bangladesh Bank official, speaking on condition of anonymity, told TBS that the shortage at Dutch-Bangla Bank's ATMs does not stem from any internal problem at the bank.

He said that a large amount of cash had gone directly into the hands of customers during Eid-ul-Azha, and the money had not yet returned to the banking system. As a result, ATM booths have been experiencing temporary shortages of physical cash.

The official further said that Bangladesh Bank had not been able to print as much new currency over the past two years as was required. Following the fall of the Sheikh Hasina's regime, banknotes printed during her tenure were not released into circulation for a considerable period.

Subsequently, work on redesigning banknotes under the interim government, incorporating imagery linked to the mass uprising and national landmarks, also limited the printing of new currency.

He noted that banknotes bearing the signature of former governor Ahsan H Mansur exist but have only been released in limited quantities. Similarly, although new notes carrying the signature of current governor Mostakur Rahman were expected to be issued ahead of Eid-ul-Azha, they have not yet become widely available among the public.

A senior official from Bangladesh Bank's currency department said currency held outside banks rose to approximately Tk3,65,000 crore at the end of May this year. By comparison, Bangladesh Bank data showed that the amount stood at Tk3,03,000 crore at the end of March.

He added that Bangladesh Bank had printed only around Tk20,000 crore to Tk25,000 crore worth of new notes over the past two years. Given the country's economic growth and expansion in GDP, at least Tk20,000 crore worth of new notes should normally be printed every year.

"New banknotes carrying the image of Sheikh Mujibur Rahman that remain at the central bank are not currently being released. At the same time, insufficient quantities of newly designed notes have entered circulation, creating this shortage," he said.

The official added that the process of designing and printing a new banknote typically takes between six months and a year. Following the events of 5 August, considerable time was spent during Ahsan H Mansur's tenure as governor redesigning notes to incorporate imagery related to the mass uprising and various historical landmarks. Although some currency was printed during that period, it has not yet been fully released into circulation. Additional time is now being required to introduce notes carrying the signature of Governor Mostakur Rahman.

'No currency shortage'

When contacted, Bangladesh Bank said in an official statement that there is no currency shortage in the country's banking system.

The central bank said a significant amount of cash is currently outside the banking system due to increased demand for currency during Eid-ul-Adha and the payment of salaries and allowances by government and private-sector organisations immediately after the holiday.

"As a result, temporary pressure may be observed in the flow of cash within banks. However, this is a normal and temporary situation," the statement said.

Bangladesh Bank expressed optimism that liquidity and currency circulation would return to normal as cash gradually flows back into the banking system following the Eid holiday.

The central bank expects the situation to normalise within the next week.

It added that Bangladesh Bank is continuously monitoring developments and has taken all necessary measures to ensure an adequate supply of currency throughout the banking system.