BB clears confusion over remittance incentives
Bangladeshi nationals working at foreign offices related to the country's shipping and airline sectors, including local mariners and aircraft pilots, will enjoy a 2 per cent cash incentive for remittances sent home on and after July 1, 2019, according to a Bangladesh Bank circular issued yesterday.
The central bank had initially widened the net for cash incentive on remittance on March 12 earlier this year in a bid to encourage the use of legal channels for sending money home from abroad.
The country's scheduled banks were instructed to follow the order with immediate effect. However, the move puzzled bankers as it was left uncertain from which date the incentives were to be given.
This prompted Bangladesh Bank to issue yesterday's circular, where it reiterated the guidelines to provide cash incentives on remittance and announced July 1, 2019 as the start date.
On August 6, 2019, the banking regulator declared that 2 per cent cash incentive would be given to individuals working at certain foreign offices that send remittance through official channels.
On March 12, it widened the criteria for incentives to include the shipping and airline sectors.
The government has allocated a Tk 3,060 crore fund to provide such incentives in the ongoing fiscal year.
For a person to avail a cash incentive of up to $1,500, the submission of various documents will not be required and the incentive will be disbursed almost instantly.
However, if remittance crosses the $1,500 mark, the receiver will have to submit an appointment letter from the sender's respective foreign company.
Meanwhile, businesspeople will have to submit a copy of their trade licence.
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