Transactions through Automated Teller Machines (ATMs) and credit cards have dropped sharply in July as countrywide student protests caused serious disruption to transactions in the banking sector.
Protests flared up since July 18 when the then Awami League government shut down internet, disrupting the business activities across the country severely.
According to the latest report from the Bangladesh Bank, transactions thru ATMs, Point of Sale (PoS) machines, Cash Recycler Machines (CRMs), and e-commerce platforms totalled Tk 40,839 crore in July, a sharp decline from Tk 51,652 crore in June.
Transactions dropped by 21 percent or Tk 10,813 crore. The number of transactions also decreased significantly, with 4.32 crore transactions recorded in July compared to 5.29 crore in June.
The central bank report said that ATM transactions took the biggest hit. In July, ATM transactions amounted to Tk 23,736 crore, down from Tk 31,137 crore in June.
The closure of many ATM booths across the country, including the capital, due to fears of looting and vandalism during protests, led to a substantial decline.
Point of Sale (PoS) transactions also saw a considerable drop, with Tk 2,713 crore transacted in July compared to Tk 3,199 crore in June. The e-commerce sector, which is entirely dependent on internet, was severely affected by internet shutdown. E-commerce transactions fell to Tk 1,448 crore in July, down from Tk 1,688 crore in June.
The report further indicated a marked decline in credit card transactions, both locally and internationally. In July, local credit card transactions totalled Tk 2,342 crore, down from Tk 2,715 crore in June, showing a decrease of Tk 373 crore or 14 percent.
Foreign nationals also reduced their spending in Bangladesh, with transactions falling from Tk 176 crore in June to Tk 136 crore in July.
Expenditures across various sectors through credit card transactions saw notable reductions in July. Departmental stores recorded Tk 1,196 crore in spending, retail shops Tk 318 crore, utility payments Tk 208 crore, cash withdrawals Tk 171 crore, clothing purchases Tk 89 crore, pharmacies Tk 140 crore, fund transfers Tk 76 crore, transportation Tk 70 crore, business services Tk 42 crore, professional services Tk 18 crore, and government services Tk 10 crore.
Credit card expenditures through Visa, Mastercard, and Amex were also down. Spending via Visa cards amounted to Tk 1,692 crore in July, followed by Mastercard at Tk 415 crore, and Amex at Tk 231 crore.
Bangladeshi credit cardholders, who regularly spend significant amounts abroad, particularly in India, recorded lower expenditures in July. Overseas spending
using credit cards totalled Tk 475 crore in July, compared to Tk 524 crore in June, a decrease of Tk 50 crore.
Spending in the United States topped the list at Tk 80 crore, while expenditures in India amounted to Tk 73 crore, down from Tk 92 crore in the previous month. Other notable spending included Tk 50 crore in Thailand and Tk 39 crore in the United Kingdom.