Monday, 23 May, 2022

BB widens areas of remittance incentive

  • Staff Correspondent
  • 21 January, 2022 12:00 AM
  • Print news

Bangladesh Bank has expanded the areas of remittance incentive, encouraging expatriates to send foreign currencies home through legal channels.

The new five earning sources for incentive include: pension fund, provident fund, leaves salary, bonus and other gratuities and other retirement benefits, according to a circular issued on Thursday.

“The sender has to ensure the proper document of the earning. The banks have to convert the foreign currencies into taka as soon as getting the remittance,” read the circular.

The directive is effective immediately, said the circular signed by Kazi Rafiqul Hassan, general manager at Foreign Exchange Policy Department of the central bank.

Earlier, the Ministry of Finance raised the cash bonus for remittances to 2.5 percent from 2 percent. The directive is effective from January 1 this year. Following the policy’s introduction, inward remittances increased 13 percent to $16.2 billion in FY2019-20 from a year earlier.

In FY2020-21, the remittance inflow rose 36 percent year-on-year to $24.6 billion, official data showed.