Dhaka, Bangladesh (BBN) – The bankers have urged the Bangladesh Bank (BB), the country’s central bank, to slash security deposit for setting up new drawing arrangement abroad to expedite the inflow of remittance.

The appeal was made at a meeting of the BB-authorised Dealers’ Forum held at the central bank headquarters in Dhaka on Wednesday with Executive Director of the BB Ahsan Ullah in the chair.

The bankers also proposed to re-fix the security deposit ranging between US$15,000 and $10,000 from the existing level of $25,000 for making such an arrangement, according to the BB officials.

“We’ve sought opinions from the bankers as part of our ongoing efforts to expedite the flow of inward remittance from different parts of the world,” a central banker said. “The BB officials earlier discussed the issue with senior officials of 34 commercial banks.”

The central bank has taken the initiative as the inflow of remittances decreased by 1.61 per cent to US$14.23 billion after 13 years in the fiscal year (FY) 2013-14 from $14.46 billion a year ago.

Currently, there are 992 drawing arrangements with overseas banks, financial institutions and money transfer companies to facilitate inflow of remittance.
At the same meeting, the BB also asked the bankers to comply with rules and regulations relating to proper checking of over-and under-invoicing in the name of foreign trade.

In January last, the central bank formed a 65-member BB-authorised Dealers’ Forum to communicate about liberalisation of foreign exchange policy with the commercial banks, particularly the authorised dealers.

BBN/SSR/AD-10July14-12:03 pm (BST)