Cash withdrawal fees soar across Arakan State as trade with India slows

By Admin 14 Oct 2026

DMG Newsroom

14 October 2026, Kyauktaw

Cash withdrawal fees across Arakan State are surging as trade and cross-border commercial activity between India and Arakan decline following the aerial bombardment of Kyauktaw's Indian Market, according to traders and online money transfer agents.

Online money transfer agents reported that trade and transport links with India have slowed significantly, causing a severe local cash shortage that has driven up withdrawal fees.

“We purchase physical cash using bank account balances from Arakan and India traders and resell it to subagents in local townships,” an online money transfer operator in Mrauk-U said. “As traders are making fewer digital transfers while demand for cash withdrawals remains high, withdrawal fees have naturally spiked.”

In townships including Werathani, Anjanapura, Mrauk-U, Kyauktaw, Ponnagyun and Rathedaung, withdrawal fees currently range from K6,500 to K7,000 for every K100,000 withdrawn.

Traders said cross-border trade with India is a primary source of cash circulation in blockade-hit Arakan State. When border commerce stalls, cash circulation across the region suffers an immediate shock.

“Trading activity is extremely sluggish, and we are receiving very few orders,” said a female trader in Kyauktaw Township. “While some traders still travel to India, their numbers are low. Previously, we made trips at least once a month, but under current conditions, that is hardly feasible.”

Because formal banking operations in Arakan State remain suspended amid the conflict, residents rely heavily on mobile financial services such as KPay, KBZ Banking and WavePay.

Compounded by widespread joblessness and soaring commodity prices, local households face severe livelihood difficulties and depend heavily on remittances from family members working abroad in Thailand, Malaysia and China.

“Yesterday, my husband transferred K1.3 million to me, and I had to pay K84,500 just in withdrawal fees at a rate of K6,500 per K100,000,” said a woman in Anjanapura Township. “Previously, the fee was K4,000 per K100,000 at most.”

Across conflict-torn Arakan State, junta-enforced blockades and continued aerial bombardments endanger civilian lives and property while devastating the local commercial economy.