A shortage of cash at automated teller machines (ATMs) across Bangladesh has been forcing customers to visit multiple booths to withdraw money, exposing strains in cash distribution despite the continued expansion of the country’s self-service banking network.
University student Mahiyat said she failed to withdraw money needed to pay her hostel rent after trying several ATM booths in the capital’s Shahbagh area.
She eventually managed to obtain cash from a booth at a metro rail station after visiting multiple locations.
A similar experience was reported by Badda resident Tahsin, who said he was unable to withdraw money using his Dhaka Bank card from City Bank and Dutch-Bangla Bank ATMs through interbank transactions.
According to him, customers holding cards issued by those banks were able to access cash, but withdrawals using cards from other banks were unavailable.
Customers in different parts of the capital have also reported cash shortages at some ATM booths operated by Islami Bank, Premier Bank, Social Islami Bank, United Commercial Bank (UCB) and EXIM Bank.
In several cases, banks have reportedly restricted or temporarily suspended cash withdrawals using cards issued by other lenders.
The problem emerged during the Eid-ul-Azha holiday period, when demand for cash surged due to sacrificial animal purchases, transport expenses and other festive spending.
Complaints have continued even after the holiday ended, with customers often forced to search for functioning booths when immediate access to cash is required.
Senior officials of three banks said interbank ATM withdrawal pressure also surged recently due to panic over Islami Bank Bangladesh, as many of its customers were trying to withdraw cash from other bank booths.
The disruptions come despite steady growth in Bangladesh’s ATM and cash recycling machine (CRM) network.
According to Bangladesh Bank, the number of ATMs increased to 13,033 at the end of March 2026 from 12,713 three months earlier. The number of CRMs rose to 8,706 from 8,483 during the same period.
Combined, the country’s automated banking terminal network reached 21,739 units by March.
Bankers attribute the shortages to a combination of elevated Eid-centric demand and weaknesses in cash management at some institutions.
UCB Chief Communication Officer Zishan Kingshuk Haque said banks faced two key challenges during the Eid period.
Cash demand increased significantly before and during Eid-ul-Azha, but banks did not receive the volume of cash they required.
“In many cases, banks received only 60 to 70 per cent of their requested cash, creating pressure on some institutions,” he told TIMES of Bangladesh.
He said shortcomings in internal planning and cash forecasting had compounded the problem.
“Some banks failed to accurately project demand and could not replenish their ATM booths on time, increasing customer suffering,” he said, adding that lenders with weaker cash management systems experienced more severe shortages.
According to him, UCB had avoided major disruptions, claiming its ATM network maintained service availability above 98 per cent throughout the period.
Islami Bank Managing Director Altaf Hossain acknowledged temporary difficulties in supplying cash to some booths but said the issue had already been resolved.
Bangladesh Bank, however, stopped short of describing the situation as a cash shortage.
Mohammad Shahriar Siddiqui, director and assistant spokesperson of the central bank, said a substantial amount of cash had temporarily moved outside the banking system due to Eid spending and the payment of salaries and allowances by public and private organisations immediately after the holiday.
“The increased demand for cash during Eid and subsequent salary disbursements have created temporary pressure on banks’ cash flows. This is a normal and short-term situation,” he said.
The central bank expects conditions to normalise within the next week as cash gradually returns to the formal banking system.
Users who spoke to TIMES of Bangladesh stressed that banks should manage their cash in line with demand, even as digital banking infrastructure continues to expand.
