Banks can now provide a maximum of 2.5 per cent incentive to remitters from their Corporate Social Responsibility (CSR) or own funds. This is in addition to the government's 2.5 per cent incentive.
The decision was taken by the Association of Bankers, Bangladesh (ABB) and the Bangladesh Foreign Exchange Dealers Association (BAFEDA) on Friday.
Under the new directive, banks can offer a maximum of Tk 115.50 to remitters. The new directive will come into effect on Sunday.
The ABB-BAFEDA fixes a target for remittances, exports, and imports every month. Banks are currently offering incentives for remittances of Tk 110.
ABB chairman Selim RF Hussain told The Business Post on Saturday, “We decided that banks can offer a maximum of 2.5 per cent incentive to remitters. Bank will offer a maximum of Tk 115.50 from CSR."
A senior officer of ABB told The Business Post, “The central bank is trying to gain USD from remitters through banking channels. Because the inflow of remittances dropped in September. Last month we received $1.34 billion. It is concerning for the economy. To raise the inflow of remittances ABB- BAFEDA have decided that banks can offer an extra 2.5 per cent incentive.”
ABB-BAFEDA have been fixing the rates for remittances, exports, and imports since September 2022. Banks are currently offering Tk 110 for remittances and exports, and Tk 110.50 for imports, as decided by the two organizations on September 24.
