Customers across Bangladesh are facing significant difficulties withdrawing cash from Automated Teller Machines (ATMs) during the current Eid-ul-Adha holiday period. Reports indicate that numerous booths have run out of banknotes, while several banks have restricted or entirely suspended transactions for cards issued by other financial institutions. This disruption coincides with a seven-day public holiday that commenced last Monday, intensifying public concern regarding access to liquidity for sacrificial animal purchases and festive expenses.
Table of Contents
Primary Causes of the Liquidity Crunch
Senior officials from prominent private commercial banks, including Dutch-Bangla Bank (DBBL), The City Bank, BRAC Bank, and Islami Bank, have identified two fundamental reasons for the current crisis:
Insufficient Supply from Central Bank: Banks requested specific allocations of cash from Bangladesh Bank to meet the heightened seasonal demand. However, the central bank failed to supply the full requested amounts, leading to a deficit in the commercial banking sector.
Technical Incompatibility with New Banknotes: Banknotes bearing the signature of the new Governor of Bangladesh Bank were recently introduced. ATM hardware requires specific calibration to recognise new note variations. While the physical design remains largely unchanged, the alteration in the signature has caused sensors in many machines to reject the notes or malfunction, leading to instances of cash becoming jammed.
Comparison of Supply and Demand Dynamics
The following table outlines the operational challenges faced by major banking institutions during this period:
| Feature | Operational Status / Data |
| Daily Requirement (DBBL) | Approximately 1,000 Crore BDT |
| CRM Deposit Contribution | 500 Crore BDT (as of Monday) |
| Note Recognition Time | Typically 4 weeks required; 0 days provided |
| Interbank Transactions | Limited or suspended at various booths |
| Primary Issue | New Governor’s signature on banknotes |
| Regulator Status | Directive issued for 24/7 service |
Technical Constraints and Regulatory Response
A technical officer from a private bank noted that it usually takes approximately four weeks to synchronise ATM software with new currency features. However, for this cycle, banks were provided with virtually no lead time. It was initially assumed that since the primary aesthetics of the notes remained the same, the change in the Governor’s signature would not trigger hardware errors. This assumption proved incorrect, though officials expect the technical issues to be resolved shortly after the Eid holidays.
Dutch-Bangla Bank, which operates one of the largest ATM networks in the country, requires roughly 1,000 crore BDT daily during peak periods. Despite collecting 500 crore BDT through Cash Recycling Machines (CRMs) and attempting to source funds internally, they—along with most other banks—could not secure the necessary balance from the central bank.
Official Statement from Bangladesh Bank
Despite these logistical hurdles, Bangladesh Bank has mandated that all scheduled banks maintain uninterrupted ATM and online banking services throughout the holidays. Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, stated that instructions were issued to ensure adequate security and sufficient cash replenishment in all booths. He maintained that, despite the reports of shortages, the majority of ATMs remain functional and continue to provide services to the public.