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Cash crunch intensifies as ATMs run dry
AM JAHID
People’s sufferings due to cash shortages have intensified as most ATM booths started running dry nearly a week ago in Bangladesh.
Most booths were either closed or without money as of yesterday as banks could not inject fresh cash amid security concerns in the absence of police and other law enforcers. Only some army personnel were patrolling various areas across the country.
As a result, long queues were seen in front of booths with readily available cash.
This correspondent found cash at only two out of 15 booths spread across Dhanmondi, Farmgate and Karwan Bazar. Of them, seven were closed while five were half-shuttered as they had run out of cash.
Anisur Rahman, a resident of the capital’s Tejgaon area, said he needed to withdraw money urgently to buy necessities for his family. However, he had to wander around at least 10 ATMs before finding one that had cash to dispense.
Unlike Rahman, multiple clients of different banks shared experiences of failing to withdraw money as all the ATMs they visited had run out of cash.
Looting of some state houses and offices alongside shops began after Sheikh Hasina resigned from her post as prime minister on August 5 and fled the country in the face of countrywide protests.
Security concerns deepened the following day, when police officials began a work abstention, citing fears for their safety amid reports of deadly attacks on policemen the previous night.
Bankers said some banks were not taking the risk of transporting cash to ATMs in the current situation, fearing looters and thieves, leading to a cash crisis among the clients.
At the same time, security agencies that carry cash have decided not to provide services in the current climate.
On August 7, the central bank asked banks not to allow cash withdrawals of more than Tk 1 lakh amid the ongoing situation.
The BB also asked banks to stop feeding money to branches if possible given the absence of police on the streets.
A top official of a private bank said that although there is no cash crisis in the banking sector, the security companies that transport money have halted services. As a result, branches, especially remote branches, were running out of money.
Other bankers also indicated ATM operations have been reduced primarily due to security concerns rather than a cash shortage.
On Thursday, Mohammad Ali, managing director and chief executive officer of Pubali Bank, said the security measures provided by the banks’ armed guards were inadequate given the current situation.
As a result, there is a heightened risk of potential incidents.
He suggested that a reliable money supply could be maintained if security was provided by the army, the Border Guard Bangladesh, or the Rapid Action Battalion.