Thai banks load cash for expected Chinese New Year rush

 

Commercial banks in Thailand are reserving over 100 billion baht in cash to meet the expected surge in demand for cash during the upcoming Chinese New Year festivities.

 

The funds will be used to facilitate the distribution of "Ang Pao" (red envelopes containing money), the purchase of offerings, and support the government's "Easy E-Receipt 2.0" initiative.

 

Budsakorn Teerapunyachai, assistant governor of the Bank of Thailand (BOT)'s Payment Systems and Infrastructure sector, estimated that banks will withdraw approximately 40 billion baht in cash. 

 

The BOT has prepared various denominations to meet the increased demand for cash among the public during this year's Chinese New Year, alongside economic activities stemming from government measures.

 

 

The central bank has emphasised that commercial banks must ensure equitable distribution and allocation of banknotes to the public.

 

 

 

          How leading banks are preparing:

 

 

● Krungthai Bank has set aside 39.45 billion baht for customer spending from January 26 to 31. This includes 7.75 billion baht for the Bangkok area and 31.7 billion baht for regional areas, with reserves allocated for branches and service points nationwide totalling 12.05 billion baht and 27.4 billion baht for ATMs. To encourage digital transactions, Krungthai Bank promotes the use of its Krungthai NEXT app and the Paotang app for sending digital "ang pao" to family members.

 

 

● TMB Thanachart Bank has prepared 13 billion baht in cash for Chinese New Year spending from January 26 to 31, including 4 billion baht for branches nationwide and 9 billion baht for ATMs. The bank is also allocating new banknotes for customers looking to exchange notes for the festival, with 474 branches and 2,406 ATMs nationwide (as of November 2023).

 

 

● Bangkok Bank (BBL) is allocating 40 billion baht in cash for customer services over the Chinese New Year through more than 8,000 branches and ATMs nationwide. The bank plans to frequently replenish ATMs to meet increased cash demand for offerings, "ang pao", travel, and gift shopping, while encouraging the use of the "Easy E-Receipt 2.0" programme, which offers tax deductions and is expected to stimulate the Thai economy.

 

 

● The Bank for Agriculture and Agricultural Cooperatives (BAAC) is preparing cash availability to facilitate customers and farmers needing cash for "ang pao" and other traditional Chinese New Year expenses. It will reserve over 20 billion baht through its branches and more than 2,300 ATMs nationwide from January 26 to 31, 2025. The bank also encourages customers to use its BAAC Mobile application for convenient and safe financial services.
 

 

 

 

● Kasikornbank is preparing cash reserves for services at its branches and ATMs from January 26 to 29, 2025, totalling 26.2 billion baht. This includes 8 billion baht reserved at branches, with 3.8 billion baht allocated for Bangkok and 4.2 billion baht for regional areas. A total of 18.2 billion baht will be allocated to 8,200 ATM machines nationwide.

 

 

● Krungsri Bank is allocating 11.31 billion baht in cash to facilitate withdrawals by customers and the general public via its ATMs and bank branches from January 23 to 29, 2025. This includes reserves of 5.998 billion baht for ATMs and 5.313 billion baht for branch services.

 

 

● Siam Commercial Bank has prepared various denominations of banknotes, totalling 28.45 billion baht for the demand during the 2025 Chinese New Year; 9.85 billion baht has been allocated for Bangkok and surrounding areas and 18.6 billion baht for regional areas. The reserves are split into 21.3 billion baht for ATMs and 7.15 billion baht for bank branches.

 

 

 

          ‘Easy E-Receipt 2.0’ to boost spending

 

 

The atmosphere for spending at the beginning of 2025 is anticipated to be particularly vibrant, especially during Chinese New Year, coinciding with the end of January. 

 

The "Easy E-Receipt 2.0" project offers all taxpayers in Thailand the opportunity to participate, benefiting from tax deductions of up to 50,000 baht, thus encouraging household spending and contributing positively to overall economic growth.