Bikash, Rocket, Nagad transfers to be capped at Tk 1,000 ahead of polls

Ahead of the upcoming national parliamentary election, authorities are set to impose restrictions on mobile financial services (MFS).

Under the proposed measures, customers of bKash, Rocket, Nagad and other MFS platforms will be able to transact a maximum of Tk 10,000 per day, with each individual transaction capped at Tk 1,000.

In addition, banks will suspend person-to-person fund transfers through internet and app-based banking channels. This suspension will apply specifically to transfers between individual customers.

The restrictions will remain in force from 8 to 13 February, according to responsible sources at Bangladesh Bank.

The authorities have taken this initiative to prevent the use of money to influence voters during the election.

Following a request from the Election Commission, the Bangladesh Financial Intelligence Unit (BFIU) has formulated the plan, while Bangladesh Bank is preparing to implement it.

Officials noted that the transaction limits may be adjusted if necessary.

Bangladesh Bank has already strengthened monitoring of cash withdrawals. Bank officials expect these measures to reduce the misuse of money during the election.

However, candidates may still spend money in line with their declared election expenses, and supporters may also contribute to campaign costs.

Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, told Prothom Alo that the authorities would restrict financial transactions in response to the Election Commission’s request.

He added that work on the matter is under way and that Bangladesh Bank will issue a formal notification within the current week.

At present, customers of bKash, Rocket, Nagad and other MFS providers can transfer up to Tk 50,000 per day to other users and up to Tk 300,000 per month. They can conduct a maximum of 50 transactions per day and 100 transactions per month.

In response to the Election Commission’s request, the BFIU has proposed that each customer may send up to Tk 10,000 per day to another customer, with a limit of 10 transactions per day.

The authorities plan to enforce these limits from 8 to 13 February. Bangladesh Bank has begun preparatory work following the BFIU’s proposal.

Meanwhile, bank customers currently use mobile apps and internet banking services to transfer funds within their own banks and to customers of other banks.

Popular platforms include BRAC Bank’s Astha, City Bank’s Citytouch, Islami Bank’s Cellfin, Dutch-Bangla Bank’s NexusPay, and Pubali Bank’s PI.

Through these services, individual customers can transact up to Tk 1 million (10 lakh) per day, with a per-transaction limit of Tk 300,000 and a maximum of 10 transactions per day.

Following the Election Commission’s request, the BFIU has proposed suspending person-to-person transfers via internet banking during the election period. Sources indicate that Bangladesh Bank is considering the proposal positively.

From 11 January, the authorities have intensified supervision of cash deposits and withdrawals. Under the directive, banks must submit a Cash Transaction Report (CTR) to the BFIU for any deposit or withdrawal of Tk 1 million (10 lakh) or more, or its equivalent in foreign currency, made in a single day through one or multiple transactions.

This requirement applies to all forms of cash transactions, including online and ATM-based deposits and withdrawals.

Until further notice, banks must submit CTRs on a weekly basis, within three working days of the following week.

The directive also states that failure to submit CTRs on time, or the submission of incorrect, incomplete or false information, will constitute a violation of instructions and will attract action under the Money Laundering Prevention Act.

Officials said that if a CTR reveals any unusual transaction, the concerned bank must take immediate action. Failure to do so will expose the bank to punitive measures.