• Friday, Nov 22, 2019
  • Last Update : 06:34 pm

Kamal clarifies remittance confusion

  • Published at 11:27 pm October 2nd, 2019
AHM Mustafa Kamal
File photo of Finance Minister AHM Mustafa Kamal Courtesy

Says multiple transactions daily by same remitter will not be questioned, remitters to get 2% cash incentives in a day or two

Expatriate Bangladeshis can now send home no more than $1,500 or equivalent money in a transaction while they can send the same amount ($1,500 or any sum within the ceiling) in multiple transactions daily as many times as they can.

The government will not raise any question about multiple transactions by the same remitter.

As per the government’s recent announcement, expatriates will also enjoy 2% cash incentive against every transaction of inward remittances at the delivery-end and it will take effective from July this year with retrospective effect.

Finance Minister AHM Mustafa Kamal came up with this clarification on Wednesday to end confusion regarding the limit of every transaction, and cash incentives.

Briefing reporters at the Cabinet Division of the Secretariat, Kamal said instructions had already been sent to all the banks and foreign currency authorized dealers (ADs) and other intermediaries (money transfer agencies) regarding payment of cash incentives.    

He said remitters would need to claim cash incentives from their respective banks and agencies against the their remittance transactions.

Kamal said the remitters would start getting accrued benefits against their remittance they had sent between July 1 and September 30 within a couple of days.

“The government will only demand documents regarding source of income in case the amount exceeded the limit of transaction, beyond $1500,” he stated.

Kamal said the government announced cash incentives on remittance with a view to mobilizing more foreign currencies.

“We have started getting benefit of that. Already $4.5 billion entered the country during July-September period, much higher than that of the same period last fiscal year,” he mentioned.

According to Bangladesh Bank (BB), the country received $3.86 billion in the first quarter of last fiscal year.

In September this fiscal year, inward remittance went up by 23.7 million compared to August. The country received $1.46 billion in September, which was $ 1.44 billion last August, the BB data shows.

The country received $1.59 billion in remittances in July as expats sent relatively a little bigger amounts to their near and dear ones back home ahead of Eid-ul-Azha.

The finance minister said the country would get around $18-$20 billion in the current financial year.

He said record high remittance entered the country during last three months.

Remittance in September was 23.7 million or 16% higher than in July.

Last fiscal, the country received $16.41 billion in remittances.

Some 1.15 crore Bangladeshis have been working and living in different countries across the world, according to latest BB findings.

Their contribution to GDP is 12% to 13% every year, the BB data shows.

The government announced cash incentives against remittances in the budget for the current financial year.