July 14, 2024

Following restrictions imposed by private banks on cash withdrawals, there has been a noticeable decline in the acceptance of online payment systems at various establishments, including restaurants, supermarkets, and mini-marts.

Since early July, increased withdrawals from bank accounts have led banks to limit cash withdrawals to amounts such as 500,000 Kyats and 1,000,000 Kyats per week. This has resulted in many businesses preferring cash payments over online transactions.

“Since banks are not providing cash, shops are not accepting non-cash payments. kpay is accepted at Capital and G&G supermarkets in Thaketa. For household items, we shop there,” a housewife told New Day Myanmar.

While some restaurants still accept online payments, smaller shops have stopped accepting them. “We can’t keep accepting kpay when it’s difficult to withdraw cash. Unlike others, we don’t want to charge extra fees. When we buy vegetables, meat, and fish, we need to pay in cash, so we can’t accept kpay anymore,” a barbecue shop owner explained to New Day Myanmar.

Despite these issues, the Central Bank of Myanmar, controlled by the junta, announced on July 11 that there are no restrictions on the amount of money that can be withdrawn, and deposits can be accessed at any time.

The conflicting statements between the banks’ withdrawal limits and the Central Bank’s announcement have added to the confusion and financial strain faced by businesses and the general public.