MFS providers can now bring in remittance

The Bangladesh Bank is now allowing licensed mobile financial service providers to repatriate wage earners’ remittance in collaboration with internationally recognised online payment gateway service providers/banks/digital wallets/card schemes and/or aggregators abroad.

To get permission, MFS providers interested in providing repatriation services will have to apply to the regulator within December 31, 2022, states a circular issued on Tuesday by the Foreign Exchange Policy Department of Bangladesh Bank.

MFS providers shall have standing arrangements with their counterparts abroad. They will receive foreign currency in their accounts and equivalent Taka value will be credited to the wage earners’ mobile financial accounts, the circular mentions.

Wage earners can open mobile financial accounts in Taka through proper e-KYC.

Bangladeshi banks will provide settlement account services to MFS providers. Designated banks shall transfer the fund, on receipt in their nostro accounts, to settlement accounts in equivalent Taka of MFS providers, the circular added.

Industry insiders say the central bank initiative will ease repatriation of wage earners’ remittances, and support local wallets like bKash, Rocket, and Upay in repatriating wage remittances. It will also help stop drainage of remittance through unofficial
channels.

In July and August of the current financial year, remittances came in at an average of $2 billion, but in September and October, the inflow decreased.

Remittances in September came in at $1.54 billion, down by 11 per cent from the same period of FY21. Besides, $1.52 billion came in October, which is 7.32 per cent less when compared year-on-year.