Customers in Bangladesh can now withdraw cash from ATMs without inserting their cards into the machine, thanks to contactless or Near Field Communication (NFC) technology.

City Bank, a private-sector bank, has introduced NFC-enabled ATM services at its booths. The facility will be available to customers of all banks.

With the new technology, customers can withdraw cash, make deposits and carry out other banking transactions simply by tapping their cards on a designated area of the ATM. Customers need an NFC-enabled ATM card to use the service, and most banks in Bangladesh are now issuing cards compatible with the technology.

City Bank claims it is the first bank in Bangladesh to introduce this new technology in its ATM network.

How It Works

At conventional ATMs, customers insert their plastic cards into a slot and enter their PIN. In some cases, cards can become stuck inside the machine, particularly when there are technical problems or power outages.

With NFC-enabled ATMs, there is no need to insert the card. Customers simply tap the card on the designated area of the machine. The ATM then identifies the card, after which the customer enters their PIN to complete the transaction quickly and securely.

City Bank has already installed around 70 to 80 NFC-enabled ATMs. The bank plans to install NFC technology in new ATMs and replace existing machines with NFC-enabled ones in the future.

Although the service has been introduced through City Bank’s ATM network, customers of any bank can benefit from it. Under the National Payment Switch Bangladesh (NPSB) system, customers of one bank can use ATMs operated by other banks. An additional Tk 15 is charged for each such transaction.

What Are the Benefits?

One of the biggest advantages is that cards can no longer get stuck inside the ATM because they do not need to be inserted into the machine.

Traditional ATMs can also be vulnerable to card-skimming devices, which can steal information from a card’s magnetic stripe. With NFC technology, information is exchanged through contactless signals, significantly reducing the risk of card cloning or data theft, according to City Bank officials.

The technology also saves time because customers do not have to wait for the card to be read and then ejected after the transaction. As a result, transaction times can be significantly reduced.

Repeated insertion and removal of cards can also cause wear and tear to the magnetic stripe and EMV chip. Since NFC transactions do not require physical insertion, the card remains less exposed to such damage.

City Bank Deputy Managing Director Arup Haider told the media that the new technology had been introduced for customers’ convenience.

“Customers will be able to conduct ATM transactions conveniently and quickly without inserting their cards into the machine,” he said.