ASIA: E-banking leads banks to reduce cash levels despite the holy months

During the holy months of Ramadhan and Idul Fitri which occurs at the end of June, demand for cash usually increases as people travel back to their home town as well as increase their spend during this festive season. Yet, state-owned lenders Bank Mandiri and Bank Rakyat Indonesia (BRI) are preparing for lower cash levels ahead of the celebrations. Bank Mandiri and BRI are only preparing Rp 23.5 trillion and Rp 23 trillion in cash respectively, lower than the Rp 25.4 trillion and Rp 30 trillion prepared by both banks last year.

The decrease in cash is due to an increase in non-cash transactions and an increase use of electronic banking services by customers. With an increase in number of bank agents and electronic channels available in the market, BRI president director Suprajarto hopes the society will go more cashless. He further emphasises that consumers generally agree that going cashless will be also less dangerous and more convenient.

Data from RFi Group shows that consumers are most concerned about security and convenience when they make a payment, similar to the sentiment echoed by BRI president director.

Both banks are well-prepared with their e-channel equipment ahead of the celebrations. Bank Mandiri will ensure that its e-banking services and ATMs operate smoothly during this period.

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