Central bank widens incentive coverage for remitters

Bangladesh Bank (BB) has taken fresh measures to boost inflow of remittance, which has been declining for the last several months.

As part of that move, the central bank said cash incentives will be given against expatriates’ pension, provident funds, bonuses, gratuity, and retirement funds.

In a circular on Thursday the BB said proper documents of such funds have to be attached and converted into local currency (taka) for getting the incentives.

The government first introduced a 2-percent incentive for remittance in fiscal 2019-20 to encourage expatriates to send their hard-earned money through proper banking channels.

Bangladesh earned $18.2 billion in remittance in FY20, which was 13 percent more than the previous year. The amount increased by 36 percent to $24.8 billion in the following year.

During the pandemic period, illegal channels were inoperative that might have forced remitters to send their money through formal channels, according to some analysts.

“Usually, Bangladeshi expatriates send their monthly income in the country. But incentives against pension, provident funds, bonuses and gratuity will encourage remitters to send those money legally,” a BB official told the Business Insider Bangladesh.