• Burmese
Friday, July 11, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
26 °c
Yangon
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home News Burma

Myanmar’s Informal Financial Service Providers Take Advantage of Post-Coup Banking Crisis

The Irrawaddy by The Irrawaddy
April 12, 2021
in Burma
Reading Time: 5 mins read
0 0
A A
Residents in Yangon, the commercial capital line up to withdraw cash in front of KBZ bank on Monday. / The Irrawaddy

Residents in Yangon, the commercial capital line up to withdraw cash in front of KBZ bank on Monday. / The Irrawaddy

12.3k
VIEWS
Share on FacebookShare on Twitter

It has become a typical Yangon scene. Hundreds of customers lined up anxiously in front of every ATM in Myanmar’s commercial hub waiting for the chance to withdraw between 200,000 to 300,000 kyats (around US$140 to US$210) per day. Many people leave their homes before dawn, as soon as the nighttime curfew is over, either to line up at the ATMs or to join the queue for the limited number of tokens that allow them to withdraw money directly from private banks.

Yet despite rising early, many people return empty-handed as the ATMs quickly run out of money and the banks run out of tokens. Many wander from ATM to ATM and from bank to bank, despite the heavy presence of the regime’s security forces in Yangon.

“I have waited for nearly half the day. There were only ten people in front of me when the ATM ran out of money,” said one Yangon resident who was trying to withdraw her salary for March. “It is quite frustrating,” she said.

RelatedPosts

Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

July 10, 2025
446
Myanmar Junta Deploying Conscripts in Major Push to Reclaim Lost Territory

Myanmar Junta Deploying Conscripts in Major Push to Reclaim Lost Territory

July 10, 2025
997
Myanmar Junta’s Top Russian Arms Supplier Tosses in Quake ‘Donation’

Myanmar Junta’s Top Russian Arms Supplier Tosses in Quake ‘Donation’

July 9, 2025
672
Residents in Yangon, the commercial capital line up to withdraw cash in front of a private bank on Monday./The Irrawaddy

Now, as people struggle to withdraw cash from ATMs and private banks, new informal financial service providers are emerging across Myanmar. These providers offer people the chance to access their money, as long as they are prepared to pay a service fee ranging from 3% to 10% of the money being withdrawn.

“It is very difficult to get a token from the bank and I can only take out 200,000 kyats at a time from the ATM. So I went to one of the new financial service providers. As soon as I transferred 10 million from mobile banking, they paid me in cash immediately. But I had to pay them 300,000 kyats as a service fee,” a local businessman told The Irrawaddy.

“Businesses have been constrained by cash shortages for a long time. Now many are using the financial service providers. It is an informal service, but we have no choice,” said the businessman.

“We don’t have to take the risk of searching for ATMs with cash or lining up for tokens. As soon as we call, the service providers just come to our door,” he added.

Last week, nearly a dozen people queuing at a KBZ bank ATM in Yangon were arrested by the security forces, without being told the reason why.

“For businesses, the service fee is not a problem. But for ordinary people trying to access their salaries, the service fee is a burden,” a staffer from an advertising company told The Irrawaddy.

“I only get 500,000 kyats a month salary. The service provider asked me to pay a 30,000 kyats service fee. I don’t know what will happen tomorrow, so I don’t dare to keep my money in the bank. So I have no choice but to pay them to access my salary,” she said.

Myanmar’s banking system has been paralyzed as pro-democracy supporters have successfully encouraged staff from the country’s private banks to participate in the civil disobedience movement in protest at the military’s Feb.1 coup. Since mid-February, businesses have suffered from a cash shortage as bank branches have closed down, except for mobile banking and limited ATM service.

Immediately after the coup, many people rushed to banks to withdraw their cash as rumors spread that the bank system would collapse.

The regime-appointed central bank introduced a new rule allowing daily withdrawals of 500,000 kyats from ATMs and directly from the banks. But since mid-March, customers at private banks are only allowed to withdraw 200,000 to 300,000 kyats daily from ATMs, while the banks hand out just 20 to 30 tokens per day for direct withdrawals.

Nor can supermarkets or shopping malls accept payment by cards anymore, following the shutdown of the mobile internet by the junta in March.

“We use mobile internet for the electronic payment system. So as long as the mobile internet is cut, we can’t offer an electronic payment system,” a branch manager from one of the largest retail and wholesale malls told The Irrawaddy.

“As we can’t use the card system, we have to keep cash to buy goods. Having cash has become vital,” a resident in Yangon said.

“We have no choice but to use the financial service providers to get cash,” she added.

Agents from Wave Money, the country’s largest mobile money transfer service, have also taken advantage of the crisis.

“We only had to pay a cash transaction fee to the agents in the past. But now they are asking for additional service fees from customers transferring cash with them,” a resident in Yangon said.

“The agents ask for 10,000 to 15,000 kyats for the transfer of 1 million kyat.  When I transferred money to my parents, I had already paid an agent the transaction fee. But my parents were forced to pay 15,000 kyats for the transfer as well. If my parents didn’t pay, the agent would refuse to transfer the cash,” she said.

An agent from Wave Money said that the double charges have become standard as the money shortage has impacted people.

“We have to line up in front of the bank as soon as the curfew has lifted. We are taking a risk as the security forces might arrest us,’ the agent said.

“People withdraw around 10 million kyats daily. Sometimes, we have to stop the service as we don’t have enough cash,” she said.

Foreign business people are also suffering from a money shortage as both cash withdrawals from the local bank and importing new funding from abroad has become difficult.

Under the previous government, the review process for new transactions from abroad only took a week. Currently, business people are not allowed to know the review process, a Japanese investor from Yangon’s Thilawa Special Economic Zone told The Irrawaddy.

“It has been four weeks already and I don’t even know what has happened to transactions coming from overseas. I am not sure where my money is,” he said.

“It is very difficult to run a business here now. We don’t know how long the crisis will last,” he said.

Myanmar’s banking system remains one of the most outdated in the region, despite the reforms that begun in 2011.

Reform of the financial system reform was a crucial agenda under the democratically-elected National League for Democracy (NLD) government ousted by the junta. The NLD liberalized most of the outdated rules and regulations, including laws on mobile financial transactions, as well as liberalizing the private banking sector and permitting foreign banks to open branches. Moreover, the NLD government was also focused on increasing the country’s financial inclusion rate, which measures the proportion of adults with access to at least one formal financial services product.

“The coup has destroyed all the reforms made over the last decade. Now, informal financial systems are booming again in the country. There is no doubt that we are going backwards,” said an economist who wished to stay anonymous.

 

You may also like these stories:

Death Toll in Myanmar Regime’s Latest Massacre Rises as Details Emerge

Three Karen Villagers Killed in Myanmar Military Airstrike

Wounded Mandalay Volunteer Burned Alive by Myanmar Regime

Your Thoughts …
Tags: ATMsBankscivil disobedience movementCoupinformal financial service providersjuntamilitary regimesecurity forces
The Irrawaddy

The Irrawaddy

...

Similar Picks:

Enter the Dragon, Exit the Junta: Myanmar’s Brotherhood Alliance makes Chinese New Year Vow
Burma

Enter the Dragon, Exit the Junta: Myanmar’s Brotherhood Alliance makes Chinese New Year Vow

by The Irrawaddy
February 12, 2024
44.8k

Ethnic armed grouping says it will continue Operation 1027 offensive until goal of ousting the junta is achieved. 

Read moreDetails
Drone Attack at Myanmar-China Border Gate Causes Over $14m in Losses
Business

Drone Attack at Myanmar-China Border Gate Causes Over $14m in Losses

by The Irrawaddy
November 27, 2023
38.6k

Jin San Jiao is latest northern Shan State trade hub in crosshairs of ethnic Brotherhood Alliance.

Read moreDetails
Arakan Army Captures Myanmar Junta Brigade General in Chin State Rout: Report
Burma

Arakan Army Captures Myanmar Junta Brigade General in Chin State Rout: Report

by The Irrawaddy
January 15, 2024
36.6k

Rakhine-based armed group has reportedly detained the chief of 19th Military Operations Command after seizing his base in Paletwa Township.

Read moreDetails
Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes
Business

Myanmar Junta Arrests Thai Condo Buyers, Realtors as Currency Crashes

by The Irrawaddy
June 4, 2024
27.7k

Monday’s arrests follow reports that Myanmar has become one of Thailand’s most lucrative markets for selling condos since the 2021...

Read moreDetails
China-Backed Illegal Rare Earth Mining Surging in Northern Myanmar
Burma

China-Backed Illegal Rare Earth Mining Surging in Northern Myanmar

by Yan Naing
July 15, 2022
34.8k

A Myanmar military-backed militia in Kachin State is protecting Chinese-run mines that produce coveted rare earth minerals used in hi-tech...

Read moreDetails
AA Urges Myanmar Junta Troops to Surrender as Western Command Burns
War Against the Junta

AA Urges Myanmar Junta Troops to Surrender as Western Command Burns

by The Irrawaddy
December 18, 2024
25.4k

Ethnic army reportedly poised to capture regime’s last stronghold in Rakhine State.

Read moreDetails
Load More
Next Post
Kachin Independence Army fighters. / CJ

Myanmar Military Artillery Kills Kachin Civilians

A roadblock set up by anti-regime protesters in Tamu, Sagaing Region. / Khampat Times

Girl, 7, Shot as Myanmar Regime Forces Attack Protesters Near Indian Border

No Result
View All Result

Recommended

Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

Trump’s Tariffs to Hit Myanmar’s Garment Manufacturers Hard

2 days ago
923
‘Reforms Are Not Optional’: Prominent Activist Urges NUG to Act Before It’s Too Late

‘Reforms Are Not Optional’: Prominent Activist Urges NUG to Act Before It’s Too Late

2 days ago
910

Most Read

  • Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

    Chinese Investment Reshapes Myanmar’s N. Shan as MNDAA Consolidates Power

    shares
    Share 0 Tweet 0
  • Myanmar Junta Deploying Conscripts in Major Push to Reclaim Lost Territory

    shares
    Share 0 Tweet 0
  • Two Prominent Myanmar Ex-Political Prisoners Die Hours Apart in Yangon

    shares
    Share 0 Tweet 0
  • Junta Bombing of Resistance-Held Areas in Mandalay, Karenni Kills Seven Civilians

    shares
    Share 0 Tweet 0
  • Chin Resistance Tensions Boil Over as CNA Seizes Rival’s Myanmar HQ

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.