By Mg Dagon / MPA
Following the introduction of Myanmar QR (MMQR), a new digital payment system by the military council, private banks have once again tightened restrictions on cash withdrawals, according to bank employees and business owners.
Since the official launch of the MMQR system by junta chief Senior General Min Aung Hlaing in Naypyidaw on Feb. 27, several private banks—including Kanbawza Bank (KBZ), Co-operative Bank (CB), and Ayeyarwady Bank (AYA)—have been struggling to meet cash withdrawal demands in major cities like Yangon.
“Even now, banks are experiencing shortages. Everyone is trying to manage the situation,” said a female employee from KBZ Bank.
A veteran bank employee suggested that the military council’s push for a digital payment system may be exacerbating the issue.
“I think the problem is a lack of physical cash reserves. Printing more money could lead to inflation,” she commented.
In Yangon, KBZ Bank has been providing cash withdrawals daily, but availability depends on deposits and transfers received, according to the employee.
A business owner with outlets in prominent Yangon shopping centers shared their experience, “Recently, I attempted to withdraw funds from KBZ Bank but was only allowed to take out 200 million kyats—less than my requested amount. However, CB Bank accommodated my full withdrawal at that time.”
Similarly, in Dawei, most banks have imposed a daily withdrawal limit of around 500,000 kyats per person, causing difficulties for local business owners, according to a resident.
The ongoing cash shortage is forcing businesses to operate with restricted bank transactions. Many companies now need to verify their bank balances before initiating transfers, adding an extra layer of complexity to their daily operations.
Despite the military council’s promotion of MMQR, adoption remains low, with many hesitant to embrace the system.
During the MMQR launch event on Feb. 27, Senior General Min Aung Hlaing emphasized its potential applications, including tax payments, utility bills, travel services, salary disbursements for government employees, pension payments, small businesses, fuel stations, private hospitals, schools, and consumer goods sales.
Junta-controlled newspapers on Feb. 28 also highlighted MMQR’s applicability in small businesses, fuel stations, private hospitals, schools, and consumer goods retail.
Editor: Ko San
Translator – Alice Wai
