Staff Correspondent:

During the first eight months (July–February) of the current fiscal year, financial transactions in the country’s banking sector have declined.

According to data from Bangladesh Bank, transactions in the banking sector have decreased by approximately 5 percent in the current fiscal year. The calculation of transactions includes cheque payments, Electronic Fund Transfers (EFT), debit and credit card transactions, internet banking, and agent banking.

The central bank’s data shows that during the first eight months of FY 2023–24, total transactions in the banking sector amounted to BDT 36.16 trillion. In the same period of FY 2024–25, this amount dropped to BDT 34.40 trillion.

This represents a decrease of BDT 1.76 trillion, or a decline of 4.87 percent compared to the previous fiscal year.

During this period, cheque-based transactions dropped by more than 19 percent. Transactions through debit and credit cards declined by 3.96 percent, while agent banking transactions fell by 4.63 percent.

However, transactions through EFT and internet banking have increased in the first eight months of the current fiscal year.

Bankers noted that the country’s three main foreign trade sectors—imports, exports, and remittances—have continued to grow this fiscal year. Based on this, one would expect an increase in monetary demand and transactions.

However, transaction statistics do not reflect this growth. A decrease in banking transactions indicates that economic activities remain sluggish. Additionally, private sector credit growth has fallen to its lowest level in 21 years.

According to Bangladesh Bank data, in the first eight months of FY 2023–24, cheque transactions totaled BDT 15.97 trillion. In the same period this fiscal year, that figure fell to BDT 12.93 trillion, marking a reduction of BDT 3.03 trillion, or more than 19 percent.

Despite the decline in cheque transactions, EFT and internet banking have seen an increase. In the first eight months of the current fiscal year, EFT transactions rose by BDT 301.10 billion, and internet banking transactions increased by BDT 1.36 trillion. This represents growth rates of 5.47 percent and 23.44 percent, respectively.

Debit and credit card transactions dropped by 3.96 percent in the current fiscal year. During the first eight months of FY 2023–24, card-based transactions stood at BDT 3.42 trillion, which fell to BDT 3.28 trillion in the same period this year.

In FY 2023–24, agent banking transactions during the eight-month period totaled BDT 5.47 trillion, but this has dropped to BDT 5.22 trillion in the current fiscal year.

Transactions through Mobile Financial Services (MFS) also declined in February compared to January. In January, MFS transactions were BDT 1.72 trillion, but in February this fell to BDT 1.59 trillion—representing a 7.33 percent decrease.