Cash still king during Aidilfitri, but e-duit Raya gaining ground (Poll Inside)

Physical banknotes are the preferred choice for many Muslims in Malaysia when it comes to giving duit raya, but online cash transfers are gaining ground as an alternative.

The custom of handing out packets containing money as gifts to family and other loved ones, especially children during Aidilfitri is seen as a way to strengthen ties and ease the burden of the needy.Rafiqha Mustaffa, 32, is among those who still prefer the traditional method of giving out duit raya in the form of physical banknotes.”I give my children duit raya in cash for sentimental reasons.“I remember feeling happy when I received the cash in my hand, so I want my children and other children to experience the same,” said the mother of two.

Others, such as Ashikin Azhar, prefer cashless transactions for convenience.”Digital money transfers are very appealing to me as they are easier and immediate, and nowadays there are many banks and financial institutions that offer e-duit raya transfers,” she said.Ashikin, who works as a sales manager, said money transfers can be accompanied by digital greetings or personalised messages that add a personal touch to the tradition.Bank Negara statistics show a notable rise in both the circulation of physical banknotes as well as electronic money (emoney) transactions during Ramadan and Aidilfitri each year.For example, in March last year – which was when Ramadan was observed – the circulation of RM1 notes rose by 7.25% month-on-month to RM3.34bil.The figure went up further to RM3.46bil in April, which was when Aidilfitri was celebrated.The circulation of RM5 notes grew by 7.51% in March to RM3.33bil and to RM3.44bil in April.Among the ringgit’s various denominations, the RM1 and RM5 notes recorded the biggest increase in the number of banknotes in circulation during Ramadan and Aidilfitri.