Remittance receivers will not need to provide documents to collect cash incentive against inflows of the euro, the pound sterling and other currencies along with US dollars equivalent to $1,500, or Tk 150,000, the central bank said yesterday.
In June, the government introduced 2 percent cash subsidy for remitters to encourage them to send money home through legal channels.
In August, a central bank notice said expatriates would receive the incentive directly to their accounts without any verification for amounts of up to $1,500. The recipients, however, have to submit a copy of their identification card.
In case of remittance of more than $1,500, sources of income and other documents will have to be presented to avoid the misuse of the cash incentive.
The initial central bank circular did not mention any other currencies other than the US dollar, creating a confusion among remitters and recipients.
Yesterday’s notice also extended the timeframe to 15 working days from the existing five days to submit documents for the amount that goes past $1,500, or Tk 150,000, in euros, pound sterling and other foreign currencies.
In the budget for fiscal 2019-20, the government introduced 2 percent cash subsidy for remitters to encourage them to send money home through legal channels.
This has given a boost to the remittance inflow, a Bangladesh Bank official said.
The government has set aside Tk 3,060 crore for the incentive purpose in the current fiscal year.
In Bangladesh, remittances have a large development impact because they are 2.3 times the net official development assistance, foreign direct and portfolio investments combined.
Remittances reached $16.4 billion in FY19, a new historic height in nominal terms. Migrant workers sent home $1.63 billion in October, the second largest inflow in a single month.
Last month’s receipts were up 32.28 percent from a year earlier and 11.64 percent from a month prior, according to the latest data from the central bank.