Dhaka, Bangladesh (BBN) – The central bank of Bangladesh is set to ask banks for encouraging expatriate Bangladeshis to use banking channel for sending remittance with lower costs.
A meeting of the Bangladesh Bank (BB) top brass with senior officials of top 20 remittance-recipient banks will be held today (Wednesday) at the central bank headquarters in Dhaka in this connection, according to officials.
“We’ll advise the leading banks at the meeting for taking effective measures to reduce the remittance-sending cost to encourage non-resident Bangladeshis (NRBs) for sending their hard-earned money through formal channel instead of illegal hundi system,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
He also said the central bank as well as the government is working continuously to revamp the flow of inward remittance in the coming months.
The BB’s latest moves came against the backdrop of falling trend in inward remittance in the recent months following slower development activities in the Middle-East countries due to lower prices of fuel oils on the global market.
A rising trend in sending hard-earned money by expatriate Bangladeshis using informal channels has also pushed down the flow of inward remittances, they explained.
The inflow of remittances dropped by 14.48 per cent to US$12.77 billion in the fiscal year (FY) 2016-17 from $14.93 billion a year before, BB data showed.
Currently, 29 exchange houses are operating across the globe, setting up 1159 drawing arrangements abroad, to expedite the remittance inflow, according to the BB officials.
They expect that the flow of inward remittance will improve in the ongoing fiscal year following different promotional initiatives.
As part of the masseurs, the central bank had asked the banks for taking different measures to attract NRBs through improvement in the quality of remittance services.
Under the moves, the banks have been instructed to open ‘help desk’ at each branch concerned for ensuring better remittance services.
The banks will have to ensure providing information on remittance to the beneficiaries on priority, according to a notification, issued by the central bank earlier.