Bank-Insurance
BD recieved over Tk 16k crores remittance last Feb
Bangladesh received inward remittance of Tk 16k crores in February. Though the inward remittance flow decreased in February compared to January, the overall remittance flow rose in the first 8 months of the current fiscal year.
According to Bangladesh Bank (BB) in the first 8 months, Bangladesh received $14.01 billion in remittance, which is $574.86 million more than the same period of last fiscal year. In FY 2021-22, Bangladesh received $13.43 billion in remittances in the first 8 months.
The foreign exchange markets of Bangladesh are being stable thanks to remittance inflow, and the forex reserves of Bangladesh bank stood at $32.3 billion on March 1, 2023.
The expatriates, freelancers, and skilled professionals of Bangladeshi have contributed to the country by earning foreign exchange while the central bank struggling with LC liabilities to import essential commodities and industrial raw materials, the sector insiders say.
Bank authorities said many import payments are being deferred due to the dollar crisis. For this, dollars coming from expatriates are being bought at a higher price than the fixed rate.
As a result, expatriate income increased. If the price limit of the dollar is removed, the crisis will go away, they say.
Bangladesh Bank spokesperson Mesbaul Haque told to the news media that in order to increase remittance inflow, the central bank has increased the exchange rate of US dollars for remittance.
In addition to a 2.5 percent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said.
Banks will not cut any charge or fee for sending remittances through legal channels, he said.
Bangladesh Bank says that more than 40 percent of remittance of expatriate income is sent to the country through hundi.
In light of the current situation, Bangladesh Bank has mandated that all banks and financial institutions refrain from charging additional fees for late payments of credit card bills and loan installments.
The central bank issued this directive through two separate notifications on Wednesday, providing a significant relief measure to the financially burdened.
Borrowers and credit card holders who were required to make payments during the curfew and public holidays now have until July 31 to settle their dues. Bangladesh Bank has explicitly stated that banks and financial institutions are prohibited from imposing any extra interest, penalties, or late fees for installments or credit card bills due between July 18 and 25. Furthermore, no savings schemes shall be canceled for non-payment of installments during this period.
The central bank’s notification acknowledges that many borrowers and credit card users have struggled to meet their payment deadlines due to the prevailing circumstances.
Additionally, numerous depositors have been unable to make timely deposits into various savings schemes, including the Deposit Pension Scheme (DPS). To address these challenges, the new guidelines will be in effect from July 18 to 25, covering dues on loans, credit card bills, and savings scheme installments.
According to the directive, if the outstanding loan and credit card payments are settled by July 31, any accrued interest, penalty interest, additional interest, excess profit, or late fees will be waived. Similarly, if savings scheme installments are paid by July 31, no late fees or penalties will be imposed.
Moreover, any interest, penalty, or late fee already collected on loans, credit cards, or savings schemes must be refunded or adjusted, as per the Bangladesh Bank directive.
The Bangladesh Bank (BB) has announced an extension for the payment period against imports of industrial raw materials from 180 to 360 days, a measure now set to remain in place until December 2024. This policy, initially scheduled to end in June of this year, has been prolonged to facilitate trade transactions, according to a BB circular issued today.
“To support trade transactions, it has been decided to extend the policy support until December 31, 2024. The extended usance period will not apply to imports under EDF loans, as previously stipulated. All other relevant instructions remain unchanged,” the circular stated.
To ensure timely payment of salaries and bonuses to garment industry workers before Eid-ul-Azha, the branches of banks in key industrial areas will remain open on a limited basis on June 14, 15, and 16.
The Bangladesh Bank (BB) issued a notification stating that bank branches in Dhaka metropolitan, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and Narayanganj will operate on these days to facilitate financial transactions for garment sector employees.
Typically, Friday and Saturday (June 14 and 15) are weekly holidays, and Sunday (June 16) will be closed for Eid. Despite these closures, the BB has mandated that banks in industrial regions stay open to manage the disbursement of wages and bonuses and facilitate the sale of export bills.
Additionally, bank branches in Chattogram metropolitan and industrial areas will also be open to support garment workers’ payments and the processing of export bills.
The BB has instructed banks to coordinate with local authorities to ensure adequate security at the branches during this period.
Eid-ul-Azha, one of the most significant religious festivals for Muslims, will be celebrated in Bangladesh on June 17.
