Bangladesh is currently spending around Tk 200 billion each year on managing physical cash, a cost that experts say could be significantly reduced through faster adoption of digital financial systems. According to recent assessments, the high expenses come from printing, transporting, distributing, and securing banknotes across the country. The process of handling cash involves multiple steps and stakeholders—from the central bank to commercial banks, security agencies, and ATM maintenance services. Each layer adds logistical and operational costs that, together, place a large burden on the financial system. Notably, maintaining ATMs and ensuring timely cash refills in both rural and urban areas form a significant portion of these expenses. Experts highlight that this level of spending is unsustainable in the long run and undermines the efficiency of Bangladesh’s financial ecosystem. While cash remains dominant in daily transactions, particularly in rural and informal sectors, there is a growing call for expanding digital alternatives to reduce reliance on paper currency. Digital payment systems like mobile banking, online transfers, QR-based payments, and point-of-sale (POS) services are gaining popularity. However, a large portion of the population still depends on cash due to limited digital literacy, lack of access to devices, and trust issues with online systems. Bridging this gap is essential to bring down costs and improve overall efficiency. Financial analysts believe that accelerating digital transformation could save the government and financial institutions thousands of crores annually. They point to successful models in other countries where robust digital infrastructure has drastically reduced the need for physical currency handling. Digital transactions are not only faster and safer but also more traceable, which helps in curbing financial crimes and improving tax compliance. The Bangladesh Bank and related ministries are already working on expanding the country’s digital finance ecosystem. Initiatives include promoting mobile wallet usage, digitizing government payments, and offering incentives for merchants and consumers to go cashless. Yet, the progress has been gradual, and a large segment of the economy still operates on cash. For a sustainable and inclusive financial future, stakeholders suggest coordinated action across government, banking, telecom, and tech sectors. Improving digital infrastructure in rural areas, raising public awareness, and enforcing security standards can encourage broader adoption of digital finance. Reducing cash dependency not only cuts costs but also paves the way for a smarter, more efficient economy. As Bangladesh moves toward its Smart Bangladesh vision, minimizing the expenses tied to cash handling will be a key milestone in modernizing the financial sector.
