BRAC Bank has halted cash withdrawal using cards outside the country to encourage the use of digital payment systems.
Confirming the matter to The Business Post on Monday, BRAC Bank Managing Director Selim RF Hussain said, “BRAC Bank's multi-currency-debit and credit card users will not be able to withdraw cash abroad.
“They will have to rely solely on digital payment systems to pay for purchases and services overseas.”
He added, “It is a bank policy to encourage the usage of digital and electronic payment systems, and discourage cash transactions. Electronic debits or payments will continue outside Bangladesh. Only cash withdrawals are discontinued.
“We had also discontinued cash withdrawals on Taka credit cards within Bangladesh a few years ago. Our customers can use our cards to purchase goods and services from merchants but cannot withdraw cash for general use.”
This is a credit-control measure, and it will ensure a clear audit trail regarding the usage of cards, Hussain added.
He then pointed out, “Foreign currency cash is issued to customers from BRAC Bank Branches within Bangladesh when customers endorse their travel quota, and show appropriate travel docs.
“We have sufficient cash foreign currency reserves in Bangladesh to serve our customers.”
The suspension came into effect from Sunday (December 24), according to a BRAC Bank notice. The bank however did not disclose how long the suspension will last.
