Bangladesh Bank Introduces Initiative to Control Remittance Costs

Bangladesh Bank has launched a new initiative to reduce the cost of remittances sent by expatriates and to increase the overall flow of remittances. Under this programme, commercial banks have been instructed to submit detailed cost information of each remittance transaction to the central bank.

The central bank has prepared two separate templates for this purpose. Banks are required to send daily transaction data by 12 pm the following day. The directive will come into effect from 1 January.

Various fees, service charges, and taxes applied by foreign banks and exchange houses increase remittance costs. According to the World Bank, remittance costs are rising in Bangladesh and other countries. By collecting this information, the central bank aims to develop strategies to control these costs.

Banks must provide details of each transaction, including date, sender bank or exchange house, remittance amount, incentives, exchange rate, fees, VAT, other expenses, and total cost. They must also keep the list of foreign exchange houses and banks up to date.

This initiative will enable expatriates to send remittances at lower costs and ensure consistent exchange rates among foreign exchange houses.

KhaborwalaAJ