Post office faces stiff competition from thriving mobile banking

Post office for slashing money transfer fees

Shakhawat Hossain | Published: 00:29, Aug 26,2018 | Updated: 00:31, Aug 26,2018

 
 

The Directorate of Bangladesh Post Office has proposed drastic cuts in fees for its electronic money transfer service against the backdrop of its falling popularity due to thriving mobile banking.
Post, telecommunications and information technology ministry officials said that the Post Office in a proposal to the finance ministry sought to lower the fee to Tk 250 from existing Tk 925 for transferring the highest amount of Tk 50,000.
The Post Office also proposed reducing fees for half a dozen other amounts with Tk 10 from existing Tk 18.50 for transferring the lowest amount of Tk 1,000, they said.
The proposed fee for sending Tk 1,000 is half the amount charged by mobile baking agents.
The proposal, sent on August 16 by the post, telecommunications and information technology ministry, is now under scrutiny of the finance ministry.
Directorate of Bangladesh Post Office director general Sushanta Kumar Mondal said that it was imperative to reduce the fees for the survival of the electronic money transfer.
He noted that the popularity of the electronic money transfer service nosedived due to mobile banking run by agents of commercial banks.
According to Post Office statistics, Tk 118 crore was transferred through its electronic money transfer service in 2016-17 compared to Tk 2,263.81 crore in 2011-2012.
In 2012-13, people availed the service to transfer Tk 2,116.18 crore and Tk 1,062.15 crore in 2013-2014.
The introduction of mobile banking in 2013 is attributed to be the major cause for the steady decline in popularity of the electronic fund transfer by the state-owned postal department.
According to Bangladesh Bank, the mobile banking is on high growth as the average daily value of mobile financial services transactions broke through the Tk 1,000 crore barrier in June last year.
Sushanta Kumar Mondal said that the income of the directorate would not decrease if the finance ministry approved the proposal which would encourage people to use the service.

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