Last week, the government released 1,320 crore taka in second instalment as 2 percent cash incentive for inward remittances of the months of October-December, according to the Financial Institutions Division.
Bangladesh has been receiving high amount of remittances through banking channels thanks to the government incentive, an official of the division said.
Most of the incentive funds were disbursed during the last 11 months despite the Covid-19 pandemic, he added.
The government decided to give 2 percent cash incentive against remittance last financial year to encourage remittances through legal channels.
From then on, the flying speed of remittances started coming to the country legal way. Every month there are new records of inward remittances
However, an official in charge of the finance ministry, speaking on condition of anonymity, said that if the remittances continue at the same rate, the remaining funds will be depleted soon.
As a result, the third and fourth instalments of the current financial year may have to be paid from other allocations, he said.
In the budget of the current financial year, 3,060 crore taka has been allocated for this purpose. The same amount was allocated in the last financial year.
Expatriates sent $1.07 billion in remittances in just 12 days of the last month. Never before in the history of the country has so much remittance come in just 12 days of a single month.
In the current fiscal year, the total remittances from July to November 12 came to $9.691 billion. During the same period of the 2019-2020 fiscal year, inward remittance was at $6.698 billion, which was about 43.42 percent more than the same period last year.
The Ministry of Finance has released Tk 1,320 crore for the second instalment last week.
According to the policy of Bangladesh Bank, no question is being asked about the cash incentive of up to five thousand dollars sent by expatriates. No paperwork has to be submitted.
However, if the amount of remittance exceeds this amount, the recipient must submit a copy of the sender's passport and a letter of appointment from the foreign employer. And in case of business person, copy of business license has to be submitted. These documents have to be submitted within two months. Cash incentive will be provided only after submission of documents.
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