Bangladesh Bank has issued guidelines on receiving 2 per cent cash incentive against the inward remittances, stating that no document would be required for receiving the incentive against remittance worth up to $1,500.
The central bank issued the guidelines following the budgetary announcement to encourage repatriation of earnings of the expatriates through legal channel, setting July 1, 2019 as the effective date.
The incentive would be given by the banks to the beneficiaries based on the amount converted into local currency, it said.
Repatriation of the remittance must take place through legal channel — foreign exchange houses or banks — which have agreement with local banks.
To get the incentive against receipt of more than $1,500 or equivalent foreign currency, the beneficiaries will have to submit copy of the remitter’s passport, appointment letter from the employer or certification of BMET and copy of business license for the business person.
In case of failure in submitting the documents instantly, the beneficiaries would be entitled to get cash incentive upon submission of documents in subsequent five days.
If the beneficiaries receive the incentive violating rules, they would not be entitled to get the incentive in future.
The remittance collecting bank will have to repay the entire remittance amount including the incentive or only the incentive amount depending the situation in case of any incident like reverse payment of remittance.
In case of payment of the incentive in violation of rules, the BB would deduct the amount from the bank’s account maintained with the central bank along with taking regulatory measures against the officials involved with the irregularities.
Banks would get three-month fund allocation from the central bank based on the average monthly repatriation of remittance through the banks in the preceding year.
If the allocated fund exhausts in three months, banks would continue giving the incentive and would adjust the amount later from the government’s allocation.
The Bangladesh Bank also warned that punitive measures would be taken against officials of banks if it is found that incentive payment is delayed by them or the beneficiaries face any hassle due to the officials.