MD MEHEDI HASAN

Many ATM (Automated Teller Machine) booths in Dhaka either ran out of cash or went out of service yesterday, the first day of the weeklong Eid holiday, raising fears of a worsening cash crunch during the festival period.

Several customers said the shortage began to emerge on Sunday, while many ATMs of specific banks were refusing cash withdrawals by customers of other commercial lenders.

Bankers said the restrictions came ahead of Eid-ul-Azha, when transactions rise sharply at cattle markets, as banks prioritised their own customers.

They also claimed that they had not received enough cash from the Bangladesh Bank, which tightened the situation further.

Demand for cash rises sharply every year before Eid, as customers withdraw larger amounts for shopping, buying sacrificial animals and travelling to their village homes.

At the same time, prolonged holidays leave many banks unable to replenish ATM booths because of manpower shortages. Security and transport issues also make cash replenishment difficult. As a result, many booths run out of money quickly.

Earlier, the central bank instructed all commercial banks to ensure adequate cash supply at their ATM booths during the Eid holiday.

However, customers in several parts of Dhaka said ATM services of many banks, especially weaker and troubled lenders, were unavailable. They also said some financially stronger banks had imposed withdrawal limits.

Rukaiya Islam, a resident of Shantinagar, visited several booths on Sunday to withdraw cash but failed. She eventually withdrew money from a bank branch.

Aminul Islam, a resident of Basabo, tried to withdraw cash using a Standard Chartered card at an Islami Bank Bangladesh PLC booth in his area but failed.

He then tried several other booths without success and eventually searched for a Standard Chartered ATM, which has become harder to find after the bank shut down most of its ATMs in recent years.

He finally found one in Karwan Bazar and managed to withdraw cash.

Contacted, Standard Chartered Bangladesh said that its ATMs were positioned at strategic locations across the city.

“During the Eid holidays, our ATM network will maintain sufficient cash in its machines so that our account holders can withdraw as much cash as they need,” it said in a written statement.