Withdrawal limit policy at state-owned banks leads to decreased interest from savers, representative discusses

U Myo Myint Thein, a Member of Parliament from Wun Tun constituency, stated in the parliament that savers are showing less interest in depositing money at state-owned banks due to the cash withdrawal limit policy. During the 25th day of the 3rd regular session of the 3rd Pyidaungsu Hluttaw, held on November 9th, he made the aforementioned statement while asking a starred question: "Is there a plan to implement policies, technologies, and services to allow the withdrawal of deposited funds from state-owned banks as needed? " MP U Myo Myint Thein said, "Currency circulation is the main lifeline of the nation and an essential requirement for social, economic, and all sectors. Currently, in our country, private banks, in addition to state-owned banks, are successfully providing currency circulation services. At state-owned banks, savers can only withdraw 20,000 kyats per week from their deposited funds, and if companies and associations wish to withdraw their deposits, they can withdraw 2 million kyats per week, but they cannot withdraw as much as they need. Due to such restrictions that make it difficult to withdraw one's deposited money, savers are showing less interest in depositing at state-owned banks and are depositing at private banks, as we have learned through our research." He continued, "Companies and savers are paying a percentage to state-owned bank employees to withdraw large sums of money, and it is inferred that undesirable corruption is occurring due to such cash withdrawal restriction policies. Therefore, in order to benefit both state-owned banks and those who deposit money, we would like to know if there is a plan to change policies and implement technologies and services similar to those of successful private banks, and we submit this question through the Speaker of the Parliament." In response to the starred question, U Thet Tun Aung, Deputy Governor of the Central Bank of Myanmar, replied that state-owned banks have been instructed to arrange and implement the smooth withdrawal of cash for customers based on the banks' cash availability, to further promote digital payment methods and account transfer methods, and to effectively supervise and manage up to the township bank branches. Furthermore, the Deputy Governor replied that state-owned banks are cooperating to enable the public to reduce cash usage and increase electronic payment methods in order to accelerate the transition process to the digital economy infrastructure of the Central Bank of Myanmar and to implement payment systems more effectively. He added that in carrying out these activities, priority tasks are being upgraded step by step based on needs, in cooperation with the Ministry of Planning and Finance, taking into account the current technological systems, operational capabilities, available financial resources, and human resources of the state-owned banks. Therefore, the Deputy Governor also replied that the Central Bank of Myanmar has informed state-owned banks to arrange for smooth operations based on their cash availability.