Bangladesh incurs an estimated Tk 200 billion annually due to its continued reliance on cash, according to Bangladesh Bank Governor Dr Ahsan Mansur, who disclosed the figure at a recent monetary policy discussion in Dhaka.

The costs stem from cash handling operations, including idle cash management, currency printing, security arrangements, and the operation of the state mint.

Speaking to economists, bankers, and policymakers, Dr Mansur stressed that the absence of a robust cashless infrastructure, regulatory framework, and digital literacy has created a significant economic burden. He called for an accelerated shift toward a “less-cash” society to reduce inefficiencies and bring informal economic activities into the formal financial system.

“We must escalate the credit card limit to make its use comfortable and encourage digital payments,” said Mansur, noting that the National Board of Revenue has removed the mandatory tax return requirement for credit card holders to promote digital inclusion.

Mobile Financial Services (MFS) could play a key role in this transition, but Mansur acknowledged the sector’s limited impact so far. A senior central bank official added that while full digitisation remains challenging given current economic conditions, efforts must focus on reducing cash dependency.

The cost of printing a 1,000-taka note is Tk 5–6, with around 13% of the country’s notes reprinted annually. Bangladesh currently has over Tk 3 trillion in cash circulating, a portion of which remains idle across 35,000 branches and banking outlets, incurring high opportunity costs, estimated between 8% and 10% annually.

Naser Ezaz Bijoy, CEO of Standard Chartered Bank Bangladesh, highlighted that inefficiencies go beyond physical printing and storage, affecting transportation, insurance, teller services, and broader economic productivity. He said commercial banks, alongside the central bank, bear these substantial costs.

Dr Masrur Reaz of Policy Exchange Bangladesh advocated for regulatory incentives to discourage excessive use of cash. “We are far behind countries like India and Thailand in digital transactions,” he said, calling for a gradual transition supported by sound policy, financial products, and improved infrastructure.

Professor Mustafizur Rahman of the Centre for Policy Dialogue warned that without addressing cybersecurity and digital governance, expanding digital finance could invite new risks. He argued that a cashless economy would enhance transparency, strengthen revenue collection, and help tackle the large informal sector.