Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Saturday, October 24, 2020 12:10:35 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Experts for single digit cash out charge

  • Twitter
  • Google+
  • Save
  • E-mail
  • Print
Share your thought
Post a comment »
Read all () »

Economic Reporter :
Experts have suggested mobile financial service (MFS) providers to cut cash-out charge down to a single-digit as high transaction cost is keeping marginal people as well as more micro and small enterprises (MSEs) away from availing these services.
They also urged the regulator -Bangladesh Bank (BB) to intervene in MFS charge by imposing ceiling to materialize the government's ongoing digital Bangladesh campaign.
Khondkar Ibrahim Khaled, former BB deputy governor, said in this present circumstance BB has no alternative of intervention for reducing the cash-out charge as the MFS operator would not do it willingly.
"MFS operators have been doing business as per their wish as BB is yet to impose any restriction," he said.
Besides, e-Commerce Association of Bangladesh (e-CAB) director Ashish Chakraborty said cash-out charge in Bangladesh as much as high compared to other countries in the world and it should be single-digit to boost country's financial inclusion and digitalization process.
At this moment, cash-out charge is Taka 18.50 for per Taka 1,000 although the agents of MFS providers have been charging Taka 20.
Meanwhile, Nagad, a MFS arm of Bangladesh Post office (BPO), has reduced cash-out charge to Taka 9.99 for every Taka 1,000 cash-out to make transaction process of customers easier and comfortable.
To get this minimum rate, a customer has to use the Nagad app and the minimum cash-out amount should be Taka 2,100. On top of the cash-out charge, the customer has to pay a supplementary duty at the rate of 15 percent fixed by the government.
However, if someone goes for cash-out through mobile operators USSD technology without using the app, the rate will be Taka 12.99 for Taka 1,000 and here 15 percent VAT will be added.
Welcoming Nagad's move of trimming down cash-out charge, Ashish Chakraborty said it might help their customers, but he feared how long Nagad can continue this offer defying the pressure of other MFS operators.
Ashish said other carriers should follow Nagad's move as low cash-out charge might boost transaction tremendously and expand industry size by many folds.
Although Nagad has slashed charge categorically, other carriers are still reluctant to do it rather they are in persuasion against this move of Nagad which would give benefit to the customers.
To implement the new cash-out charge, Nagad has slashed their income from the previous portion. However, other operators in the market are still charging cash-outs as before.
Nagad said even after bringing down the cash-out charge to single digit, its income from this segment is still prevailing.
They said if Taka 1,000 was cash-out using app at previous rate, its revenue would have been Taka 2.74, which has now been brought down to less than Taka 0.02.
In case of full calculation of cash-out, the cost of SMS is Taka 0.064 as before while this cost is same like all MSF operators.
In the new charge structure revenue portion for distributors also reduced, however income of the agents remains same as before. Moreover, their income has already increased more than before due to the increase in transactions. In the new charge structure of Nagad, agents are getting Taka 4.10 for cash-out of Taka 1,000 as before.
Nagad Managing Director Tanvir A Mishuk said that they have been providing customer-friendly service from the beginning with lower charge than all other operators.
"Single-digit cash out charge would expedite financial inclusion in the country," he said mentioning that over the past decade, several MFS operators have been cutting customer pockets imposing high charges.
Industry people said few MFS operators are reluctant to cut costs rather announcing offers imposing conditions to cheat customers categorically. They said the carriers are giving cash-back to only five customers for bill payment but running campaign which apparently shows they are giving 100 percent cash-back facility to everyone.

Add Rate

News Archive

Inside The New Nation

Editorial »

Transfer may offer protection from anger of local people

NINETEEN police officials including the Commissioner of Sylhet Metropolitan Police (SMP) have been transferred on Thursday in the aftermath of Rayhan murder in city's Bandar Bazar police outpost on October 11.  The Commissioner has been transferred to Prime Minister's Special Protection Battalion (SPBn) as Deputy Inspector General (DIG) of Police ...

International »

Erdogan says Turkey tested Russian S-400s, shrugs off US reaction

Reuters, Ankara :Turkish President Tayyip Erdogan confirmed on Friday that Turkey had been testing the S-400 air defense system it bought from Russia, adding that the objection from NATO ally United States on the issue did not matter.Washington says Ankara's purchase of Russian S-400 systems compromise NATO defences, and has ...

Entertainment »

What film actors say about Pori Moni on the occasion of her birthday

Sheikh Arif Bulbon :Children are very much fond of film actress Pori Moni. There is a reason for one thing. After releasing the song titled Dana kata pori performed by Pori Moni in Wajed Ali Sumon directed movie Rokto, it is still popular songs among all. In any stage show ...

Editorial »

Bangladesh should take immediate measures to cope with Kuwait's new foreign workers’ law

KUWAIT'S parliament has approved a law to reduce the number of foreign workers in the country by one year, as part of efforts to 'rebalance' its population. The new legislation, which would force hundreds of thousands of expats to leave the Gulf state, was passed with an aim to provide ...

City »

Barrister Tasmia Prodhan speaks at commemoration meeting and doa mahfil in remembrance of former President of Jatiya Ganatantrik Party Prof Rehena Prodhan at GUP Auditorium on Thursday.

International »

Refugees allege physical, sexual abuse by Croatian authorities

Al Jazeera News :Refugees and migrants have sustained "severe injuries" after having allegedly been whipped, beaten and sexually abused at the hands of Croatian authorities during their attempts to reach western Europe for asylum.Last week, the Danish Refugee Council (DRC) collected testimonies from more than 70 refugees and migrants at ...

Entertainment »

Kangana gets rape threat from Odisha lawyer

Actress Kangana Ranaut has received a rape threat from an Odisha-based lawyer. The actress, who is currently in her hometown Manali, is yet to respond. The comment came on a Facebook post she had shared on Navratri, in which she also mentioned another FIR registered against her in Mumbai. She ...

City »

91th birth anniversary of Poet Shamsur Rahman today

The 91th birth anniversary of renowned Poet Shamsur Rahman will be observed today in a befitting manner across the country.Regarded as a symbol of aesthetics for his lifestyle, gestures and works Rahman was born in the old part of Dhaka on October 23 in 1929 and died on August 17, ...

Editorial »

We fail to ensure quality air to breathe due to apathy to clean energy

THE country's air is becoming increasingly poisonous in the absence of effective measures to control the released pollutants.  State of Global Air 2020 report revealed that in 2019 air pollution caused 173,500 people's death in Bangladesh and 6.7 million across the globe. Experts said life expectancy in Bangladesh would have ...

International »

5 South Koreans die after getting flu shots, sparking vaccine fears

Reuters, Seoul :Five people have died after getting flu shots in South Korea in the past week, authorities said, raising concerns over the vaccine's safety just as the seasonal inoculation programme is expanded to head off potential COVID-19 complications.Authorities said there was no reason to believe the deaths were linked ...

International »

Australian writer detained in Beijing, as suspected former Chinese spy

Reuters, Sydney :Yang Hengjun, an Australian writer detained in Beijing and facing trial for espionage on behalf of a country China hasn't publicly named was a former Chinese spy, according to a confidential letter he wrote to a supporter in 2011.In the detailed letter he wrote to his former teacher, ...

Cricket »

Rashid Khan says Afghanistan need to play more against the world's best teams

Afghanistan will only develop as a Test-playing nation if they are given more opportunities, says Rashid Khan.Afghanistan are not involved in the World Test Championship, despite being awarded five-day status by the International Cricket Council in 2017.A one-off Test against Australia in Perth this winter has been postponed because of ...

City »

Newly appointed Indian High Commissioner to Bangladesh Vikram Kumar Doraiswami calls on Agriculture Minister Dr. Abdur Razzaque at the latter's office of the Ministry on Wednesday.

Editorial »

Child`s online presence must be secured from pornography

GIRLS as young as nine to 15 are first targeted on different social media, especially Instagram, and then they are provoked by different sexual content. Once the child responds, she is then blackmailed for nude videos and photographs that could be sold on the dark web in exchange for bitcoins. ...

National »

Expat Kamrul dies from Corona in Germany

Our Correspondent , Chandpur :A man from Chandpur  residing in Germany died of Corona on Sunday  morning (GMT) at his  residence in Ofenbath town near Frankforte city  in Germany. The deceased was  identified as  Kamrul Islam  alias Mukul.  He was 60, said his family source and close kin in Chandpur. ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news