Mobile money withdrawal fees continue to soar in Arakan State

By Admin 05 Aug 2026

DMG Newsroom

5 August 2026, Mrauk-U

Residents across Arakan State continue to face soaring mobile money withdrawal fees as conventional banking services remain suspended, forcing people to rely on digital money transfer services, according to local residents and mobile money agents.

In recent days, withdrawal fees for K100,000 have risen to between K6,000 and K10,000 in several townships, including Kyauktaw, Mrauk-U, Anjanapura, Rathedaung and Buthidaung.

"The withdrawal fees are extremely high. It is not as noticeable if you withdraw around K200,000, but when withdrawing around K1 million, the fee becomes enormous. It is completely unsustainable. Both senders and receivers suffer losses," a resident of Mrauk-U said.

With conventional banking services remaining suspended across Arakan State due to the conflict, residents have been forced to rely primarily on mobile wallets such as KPay, AYA Pay and Wave Pay.

A mobile money agent in Kyauktaw Township said the increase in withdrawal fees is largely due to a decline in cross-border trade with India during the monsoon season.

"Previously, many traders travelled to India, so money transfers and withdrawals were active in Arakan State and transaction volumes were high. Physical cash was also easier to obtain at lower prices. Now, even we agents have to buy cash at higher prices before paying clients, which has pushed withdrawal fees even higher," he said.

Withdrawal fees currently stand at K6,000 per K100,000 in Kyauktaw, Anjanapura and Mrauk-U townships, K7,000 in Rathedaung Township, and as high as K10,000 in Buthidaung Township and some other areas.

Local sources said reports that Starlink satellite internet services in Arakan State may soon be shut down have prompted many residents to withdraw their savings from mobile banking accounts, further increasing demand for cash and driving up withdrawal fees.

"Current weather conditions and military conscription are also contributing factors. Younger traders who used to travel to India are no longer making the trip as often. Older traders are avoiding travel because of bad weather and difficult journeys. Some have also suspended trading because rising travel costs have reduced profits," a trader from Kyauktaw Township said.

The rising withdrawal fees have placed an additional burden on local residents and internally displaced people who depend on remittances from family members working abroad to meet their daily needs.

Many families in Arakan State rely on relatives working in Thailand, Malaysia and China to support their livelihoods.

However, cash shortages have forced residents to pay high commissions to withdraw money through agents. At the same time, the military junta continues to monitor, block and freeze high-value online payment accounts.

Since intense fighting broke out in late 2023, branches of the state-owned Myanma Economic Bank and private banks, including Kanbawza Bank, Ayeyarwady Bank and Innwa Bank, have ceased operations across Arakan State.

As a result, merchants and residents rely almost entirely on KBZ Pay, Wave Money and mobile banking agents for money transfers and cash withdrawals, worsening the shortage of physical cash.

Although the United League of Arakan has begun preparations to establish its own banking system to ease the situation, the system has yet to be implemented.