Bangladesh Bank has introduced a new initiative to reduce the cost of remittances sent by expatriates and to increase the overall remittance flow in the country. Under this programme, commercial banks have been instructed to submit detailed data of each remittance transaction regularly to the central bank.
The central bank has prepared two separate templates for data collection. Banks are required to submit daily transaction information by 12 pm the following day. The circular states that this directive will take effect from 1 January.
Currently, foreign banks and exchange houses impose various fees, service charges, and taxes on remittances. Local banks also charge service fees on transactions, increasing the overall cost. According to the World Bank, remittance expenses have been rising in Bangladesh and other countries. By reviewing this data, Bangladesh Bank aims to implement effective measures to reduce costs.
Banks must report each transaction including the date, sending bank or exchange house name, transaction method, remittance amount, incentives, exchange rate, fees, VAT, other expenses, total cost, and cost in USD. They must also regularly update the list of foreign exchange houses and banks.
This initiative will enable expatriates to send money at lower costs and ensure consistent exchange rates among foreign exchange houses. Consequently, expatriate earnings will reach their families more efficiently, and overall remittance management will become more transparent.
| Topic | Details |
|---|---|
| Initiative | Reduce remittance costs and collect data |
| Authority | Bangladesh Bank |
| Effective | From 1 January |
| Data Required | Transaction date, bank/exchange name, method, amount, fee, VAT, other expenses, total cost, cost in USD |
| Objective | Reduce remittance costs, increase remittance inflow, ensure transparency |
AJ