Bangladesh has been a key promoter of the remittance industry. Considering this, the Bangladeshi government has made it easier for its diaspora to send money to Bangladesh. The expatriate community has been given 2percent cash incentive to encourage more foreign remittance in Bangladesh by its Government. Having a birds-eye view on the remittance flow of Bangladesh, we observe that it went through an inflow triple from USD 4.9 billion in 2005-2006 to USD 15 billion in 2018.
On the other hand, the exchange rate of the Bangladeshi currency i-e Taka opposite of US dollar is also advantageous for Expatriates to transfer money through these legal online services to their native land.
Last year, when the country’s budget was announced, the prime minister of Bangladesh, Sheikh Haseena, added this 2 percent cash incentive on international remittance to enhance remittance flow in the country. The offer has received a lot of appreciation in the international arena and is also considered as a breakthrough policy for booming Bangladesh’s economy.
This innovative incentive offers,
Incentive for Beneficiaries:
Incentives apply on transfer up to USD 1500 but if it’s exceeding than USD 1500 it requires valid documentation to avoid any illegal funding. For higher values, beneficiaries will need to show the remitter’s passport, an appointment letter from the employer, and a certification from the Bureau of Manpower, Employment, and Training (BMET).
Incentive policy for Business Expatriates:
- The same quotation is applied for Business Expatriates. If the remitting amount is exceeding USD 1500, their beneficiaries need to produce a copy of the business license for fund transfer.
- If beneficiaries fail to submit the required documents, they are given a period of five days to put the documents, after which the beneficiary will be receiving the cash incentive. If remitters or beneficiaries are found violating these rules, they will not qualify to receive any incentive in the future.
- In any case of haphazard like reverse payment, the specific bank has to repay the amount, including all incentives.
- On the other hand, banks can have a three-month fund allocation from the central bank depending upon the average transaction or transfer that went through the current year.
- In case of any violation, the BB would deduct the amount from the bank’s account integrated with the central bank with all applied measures against the officials
- To restrain from any delay or discrepancy in the future, The Bank of Bangladesh also declared their disciplinary measures to be taken against the officials, i.e, If the allocated fund exhausts in three months, banks would continue giving the incentive and adjust the amount later from the government’s allocation.
In this pandemic year, more remittance has been observed. Expatriates are being offered an extra 1 percent bonus by many of providers with the Government’s 2% Cash Incentive on International Remittance policy. It seems very helpful to increase the rate of remittance flow in the country. Companies like ACE Money Transfer are supporting the Bangladeshi government’s scheme on a large scale by offering promotions and extra incentives over this policy. ACE has been a market leader in the remittance industry, providing cost efficient and safe transfer. Ace also offers the best exchange rates to do money transfer to Bangladesh.