Interview with Central Bank of Myanmar Deputy Governor Dr Lin Aung regarding rumours spreading on social media

DSC 8560 Dr.Lin Aung sskm
CBM Deputy Governor Dr Lin Aung.

Q: The news is spreading on social networks, such as the cash withdrawal at private banks increasing, a limit has been imposed on cash withdrawals from the banks, and private banks have also permitted cash withdrawals in a limited amount. Please explain about it.
A: The Central Bank of Myanmar (CBM) emphasizes the digital payment system in implementing the digital economy of the government and creates digital platforms as per the cash management systems. The banks also create payment platforms, and the operation is running well.
Payments via the banks are prioritized in the international payment system. The CBM has already instructed the banks to allow cash withdrawals as per the rules and regulations. For example, the Special Account is permitted to withdraw as per the bank deposits. Moreover, transactions can be made via digital payment systems like electronic cards, mobile banking, mobile pay, Internet banking, and mobile wallets. Currently, arrangements are made to use them properly. Therefore, people do not need to worry about it as the payment and transactions can be made unlimitedly.
Q: Currently, people panic and withdraw their bank deposits due to the various propaganda of malicious media outlets. I would like to know the arrangements of the CBM.
A: The people now worry about their deposits and withdraw their deposits from the banks due to the rumours fuelled by the malicious media. It is found that the unscrupulous business people manipulate the dollar prices, gold, and ‘hundi’, and the people have anxiety and withdraw the cash. The commodity prices also become unstable due to the lack of financial stability.
In international countries, they reduce cash use and make payments via the safe digital payment system. The cash needs to be counted, and dangers such as water, fire, theft, and robbers can be encountered. Moreover, high withdrawals can cause unnecessary inflation, unstable trading conditions, and high commodity prices, and people face the impact of prices due to price manipulators. Therefore, officials and organizations take action against such unscrupulous people and price manipulators.
Q: Although CBM’s statement said there is no limit imposed on the amount of cash withdrawals from bank deposits, some private banks allow cash withdrawals at a limit in actual situations. Please explain it.
A: I replied to such a question earlier. Cash withdrawal can vary depending on the type of deposit. The Special Account withdrawals can be made as per the amount of cash deposits. The withdrawal for the savings account can be made once a week. The withdrawal for Fix Deposit can be made only when it reaches the fixed target. In regard to bank deposits, including savings accounts, people can make cash withdrawals as per the stipulations of cash management of the CBM and can also enjoy banking services via digital methods such as mobile banking, internet banking and account transfer unlimitedly.
What I want to urge the people again is that they should use digital methods in transactions.

Q: Please mention the conditions for handling the banks by the CBM.
A: The CBM grants the needed cash to the banks. The banks also grant cash to the customers within the amount of money that can be stored at the bank. According to our previous experiences, the CBM handled large cash withdrawals from the banks properly, and banking services were provided well. The CBM supervises deposits and withdrawals of the banks daily, and the people do not need to worry about the rumours. They should work with us for the sake of the people.
Translated / KTZH

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