Nagad brings down cash-out charge to single digit

For the first time in the country Nagad has brought down the cash-out charge to Tk 9.99 per Tk 1,000, the lowest rate ever in the country’s burgeoning mobile financial service segment

The mobile financial arm of the Postal Department is offering the cheapest fund withdrawal rate for the customers to mark the 74th birthday anniversary of the Honorable Prime Minister Sheikh Hasina.

For the customers who don’t use the mobile app for cash-out and rather rely on the mobile phone’s USSD facility, the charge will be Tk 12.99, says a media release.

To avail the new rate, users will have to withdraw at least Tk 2,100 in a single transaction. A 15 per cent Value Added Tax (VAT) will be applicable.

Because of the lowest cash-out charge, mobile financial service users will be more interested in using this fastest-growing transaction facility. This will ultimately help the economy grow at a faster rate.

About the cut in the cash-out charge, Tanvir A. Mishuk, managing director of Nagad, said, “We have always been against a high rate of cash-out charges. We think that the cash-out charge that has been prevalent for the last decade (Tk 20 per Tk 1,000), is an injustice to customers. That is why Nagad has been offering the lowest cash-out charge to customers since its inception.”

“The surprise offer to Nagad’s customers was announced on the occasion of the birthday of our beloved Prime Minister Sheikh Hasina. This will make the cost of using Nagad much more affordable than ever before and will accelerate the digitalisation of financial transactions. We think that the government can take an initiative to fix the maximum cash withdrawal charge for all mobile financial services.”

With this lower cash-out charge currently, Nagad users are also enjoying a free of cost transactions within the network, whereas other operators charge intra-operator transactions.

Earlier, aiming to stand beside the small business entity Nagad has introduced Tk 6 as the charge for every Tk 1,000 cash-out for five types of small business entities to cut their cost of doing business during the coronavirus pandemic.

Rolled out commercially on March 26, 2019, Nagad already became the second mobile financial carrier in Bangladesh thanks to its unique service and offers. It has been involved in various innovative activities of government and non-government agencies.