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09 March, 2022

What are your suggestions for improvement of the banking channel for remittances to Bangladesh at low cost and greater speed?

 Steps Taken for Remittance Process Improvement:

Government as well as private sector has undertaken various strategies to make remittance transfer easier and hassle free. Now, the Nationalized Commercial Banks (NCBs)   have   some   overseas   branches/remittance   wings   for   transferring remittances. The  private  commercial  banks  (PCBs)  also  become aggressive in transferring remittances by providing quick and reliable services. Some of the PCBs also  have  established  oversees  branch  or  correspondence  relationship  with


Banks/Exchange Houses. Although the nationalized and private commercial banks have taken various marketing strategies to transfer remittances, but even today, the choice of remittance channel is 46% formal and 54% informal.

 

Recently, illegal transfer of money slid down drastically, as Bangladesh Bank (BB)

has stepped up monitoring of such transactions at home. BB so far gave license to

660 exchange houses to set up offices abroad to facilitate remittance. Local banks are now able to deliver money to recipients in weeks.