Internet Banking transaction ceiling enhanced by four times

The Bangladesh Bank has enhanced the internet banking transaction limit by four times from the existing ceiling considering the current rising trend using digital platforms during pandemic situations.

The new transaction limit for individuals was set at Tk 5 lakh, which was previously Tk 1 lakh. 

The ceiling per transaction in a day was set at Tk 1 lakh for an individual and the highest number of transactions was set at 10, according to Bangladesh Bank circular issued on Sunday. 

The Bangladesh Bank also introduced separate transaction ceiling for institutional clients setting highest transaction limit at Tk 10 lakh per day. 

The ceiling for per transaction for institutional internet banking users was set at Tk 2 lakh and number of transaction was set at 20 for a day, according to the circular. 

The new transaction limit will come into effect from September 10. 

The Bangladesh Bank enhanced the transaction limit at the time when all banks have heavily expanded their digital transaction platforms. 

The country's internet banking services have been booming amid the Covid-19 pandemic as customers have been seeking online services to protect themselves from the virus.

Banks are hoping that this new trend will encourage moving banking activities into a completely digital arena.

According to the central bank's data, in June 2020, transactions through internet banking had increased by 12.6 percent since March.

In March, when the country diagnosed its first novel coronavirus case, internet banking transactions were Tk6,588 crore. The monthly transactions increased to Tk7,421 crore by June this year.

Bankers said people are showing more interest in having internet banking facilities as they are more practical, and customers can conduct some important transactions from home or elsewhere.

Selim RF Hussain, managing director of Brac Bank, told The Business Standard, "During the pandemic, we saw a booming trend of using internet banking as the customers could not move freely because of the fear of the virus. We are trying to increase internet banking facilities."

Recently, Brac Bank announced that it will enable the self-registration system to its internet banking services using credit cards as well.

As per the Bangladesh Bank's data, from April to June, the number of internet banking users has increased by 93,560 people. And the number of total internet banking users stood at 27.42 lakh at the end of June 2020.

In March, internet banking users made 18.49 lakh transactions. In June, the number of transactions increased to 22.07 lakh.

Prime Bank has introduced internet banking access for corporate customers to enable them to make big-ticket transactions online as companies progressively get used to the pandemic's remote working culture.

"PrimePay will help businesses keep pace with competitive and fast-changing business landscape through this secured and seamless digital transaction services," said Rahel Ahmed, managing director, and chief executive officer of Prime Bank. 

The platform will enable the bank's wholesale banking customers to make mega transactions in a minute, which now takes multiple hours, said Shams Muhaimin, a senior executive vice-president of the bank.

A company can pay salaries to thousands of accounts at a time through this PrimePay app. 

Currently, corporate customers have to send application to the bank for bulk payments and maintain some other process like authentication, and checking of transaction. 

Access to internet banking will enable them to make all this process through their app and 24/7 hours.