Bangladesh’s inward remittances have crossed $2.50-billion mark in July, the highest-ever remittance the country received in a month. Our expatriates sent home as much as $2.60-billion in the month.
The significant increase in remittance can be attributed to a number of factors including the government initiatives in the form of incentive provided to the beneficiaries against inward remittance. The supportive government policies have prompted many expatriates to send money through banking channel instead of sending through the illegal channel known as ‘hundi,’ increasing the remittance volume, thanks to the two per cent incentive on their money transfers. The country has fetched $4.43 billion in remittance in June and July this year. The record inward remittance has taken the country’s foreign exchange reserves to an all-time high of $37.28 billion as of July 30.Beside the incentive factor, the transaction through banking channel would also benefit the remittance beneficiaries to avail different other banking services. Banks should ensure hassle-free service to the beneficiaries without any hidden cost. Had the government introduced this system earlier then the remittance might have increased by manifold. Although a large number of migrant workers have returned to the country, but remittance has considerably increased through legal channel due to the pragmatic steps taken by the government amid the coronavirus pandemic.
The issue of promoting the inclusion of peoples’ economic activity into the financial system has profound consequences. It not only caters to the broader economic agenda of allowing a wider range of people, especially those in lower income groups, access to financial services. S0, all scheduled banks should extend their services to people, especially rural people, so that underprivileged people can get their remittances through prompt services rendered by the banks. Remittance has played a vital role in running our economic activities. Because of increased inflow of remittance, economic activities at the grassroots level have increased; especially economically backward people have come under the fold of mainstream economic activities of the country. As a result, the rural areas have changed a lot in terms of infrastructure and at the same time, poverty has been decreased to considerable extent.