Staff Reporter: Bangladesh Bank has directed the banks to provide cash assistance at the rate of 2.5 per cent on remittances sent by legal expatriates. On Sunday, January 2, the Foreign Exchange Policy Department of Bangladesh Bank issued instructions in this regard and sent them to the managing directors and chief executives of all scheduled banks.
According to the directive, the government has decided to increase remittances by increasing the foreign exchange reserves, prevent money laundering, create employment and the importance of remittances sent by expatriates for the economic development of Bangladesh. Cash assistance has increased the existing rate to 2.50 percent.
The current 2021-22 fiscal year will be effective from January 1, 2022. In addition, other instructions regarding incentives or cash assistance against remittance remittances will remain in force as usual.
As a result of the new decision of Bangladesh Bank, expatriates will be able to raise 102 rupees 50 paise by adding 100 rupees and two and a half rupees. So far, the expatriates have been receiving assistance at the rate of two percent in remittances. In other words, by adding 2 rupees with 100 rupees, he would get 102 rupees.
In the 2019-20 fiscal year, the government decided to provide cash assistance at the rate of 2 percent for the first time. Due to this policy support, the amount of money sent to the banking channel has increased to ৮ 1.62 billion in the fiscal year 2019-20. Which is about 13 percent more than the fiscal year 2018-19.
The amount of remittances in the fiscal year 2020-21 was ৮ 2.48 billion, which is about 36 percent more than in the fiscal year 2019-20. In the first five months (July-November) of the current financial year, the expatriates have sent remittances of 809.2 million dollars.
In a press release on January 1, Finance Minister AHM Mustafa Kamal said, “Economists will understand the huge role that remittances play in the socio-economic sector of Bangladesh and they will agree with me that it has been a great achievement. We are trying to bring it to the right channel. We were not getting remittance because it was going to informal channel. I will discourage that channel and I want to achieve the whole through formal channel.
That is why the incentive has been increased from 2 percent to 2.5 percent. It is effective from Sunday. I hope 26 billion will be achieved in this financial year.
Later that night, the Finance Ministry issued a circular signed by Deputy Secretary Mohammad Anisuzzaman. Bangladesh Bank has been instructed to take necessary steps in this regard.
Source: Daily StockBangladesh by www.dailystockbangladesh.com.
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