There are an ever larger number of options for sending money overseas or processing international money transfers. Below are some of the methods available to you:
1. Foreign Exchange Providers: When transferring much larger amounts of money,
for purchasing a property or starting up a business
for example, or sending regular payments abroad, it may often be cheaper to use a reputable currency broker
2. Banks: Most of the UK banks offer money transfers, so long as you hold an account with
them and also the recipient.
3. Money Transfer Operators: It is are companies that only offer money transfer
services, usually through agents,
and only send money between countries.
4. Online
money transfer
services/internet
money transfers:
For
a
small percentage, you can send money via the internet using secure online payment providers.
5. Prepaid money cards: Load up a prepaid card and spend abroad just as you
would a credit card or debit card.
The problems normally encountered by them for such transfer are:
1. Poor infrastructure in rural and semi-urban economy
2. Inadequate reach of
private commercial banks within the country
3. Massive information asymmetry in the market
4. Active ‘Hundi’ market
5. Inefficiency of financial institutions
6. Poorly regulated exchange houses
7. Low literacy rate in the country
8. Uneven competition among financial institutions
9. Lack of investment in IT backbone development for market efficiency
10.Absence of
a strong central payment gateway for ‘Straight Though Processing
(STP) of
payment services
[
Problems created by fund transfer are as follows:
1. Brain drain: Brain drain is the most significant
negative side of enjoying fund transferring for any developing country like Bangladesh. Though we get an
important portion of remittance from our educated skilled person after all it is not favorable because educated people are
very important for our economy.
2. Income inequality: In a specific community, relative income inequality may
be found where there are
both emigrants’ families and non-emigrants families due to the variation in their income levels.
3. Regional disparities: In the same line of above reasoning regional disparities
may be found among emigrants’ intensive regions or districts like
Sylhet, Chittagong, Comilla, Noakhali, Dhaka etc. and less emigrants’ intensive
regions
or
districts of
the
country.
4. Increased demand for imported
luxury
goods:
There is a tendency of
remittance earning families to purchase foreign luxury goods which creates unfavorable condition in the balance of
payments.
5. Misuse of remittance: Sometimes the young people of remittance earning family easily get huge money on their hand and misuse
that money creating various types of
immoral and illegal activities.
6. Social insecurity: Sometimes remittance earning families feel insecurity from
hijackers. They are sometimes
compelled to pay to the bad section of the society.]