Regulatory Alerts2020-12-02
Added · Updated
FEPD Circular Letter No. 40: Cash incentive against wage earners' remittances sent through legal channels
The document simplifies the documentation and verification process for receiving a 2% cash incentive on remittances exceeding BDT 5,000 or USD 5,000. Beneficiaries are now required to submit remitter documents directly to their bank branch, which verifies them and sends confirmation to the collecting bank to release the incentive. This streamlined procedure applies when the paying and collecting banks are different, or allows the single bank to handle both collection and verification if they are the same entity.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka. Ref. No. FPD/Policy/Circular-40/Dated: --------------------- To All Chief Executive/Managing Directors All Scheduled Banks operating in Bangladesh.
Dear Sirs,
Reference is drawn to the attention of all concerned regarding "Guidelines for providing incentives/cash assistance against remittances sent through legal channels" vide FE Circular No. 31 dated 06/08/2019, letter no. FEPD(LDA)/147(1)/2019-7600 dated 07/10/2019, and FE Circular Letter No. 20 dated 12/05/2020.
- In accordance with the aforementioned circular, letter, and circular letter, there is an obligation to send remitter documents from an exchange house abroad to receive a 2% incentive/cash assistance for remittances exceeding BDT 5,000 (Five Thousand) or USD 5,000 (Five Thousand Dollars). Now, the method for submitting/verifying the necessary documents by the remitter for receiving the incentive/cash assistance is simplified as follows:
a) For the aforementioned remittances, the beneficiary will submit the remitter's documents to their bank (the paying bank) branch to receive the 2% incentive/cash assistance.
b) The bank providing the remittance will verify the remitter's documents at its own responsibility and send confirmation to the bank collecting the remittance for releasing the incentive/cash assistance at the earliest possible time.
c) Based on such confirmation, the bank collecting the remittance will release the incentive/cash assistance to the bank providing the remittance.
d) If the bank collecting the remittance and the bank providing the remittance are the same, the bank collecting the remittance itself will collect the remitter's documents from the remittance beneficiary and verify said documents.
- These instructions shall be effective from July 1, 2019. In this regard, FE Circular No. 31 dated 06/08/2019 issued previously and other instructions issued subsequently in continuation thereof shall remain in force as usual.
Yours faithfully,
(Md. Shahidul Islam) General Manager (In charge) Phone: 9530108
Subject: Regarding provision of cash assistance against remittances sent through legal channels.
17 Agrahayan, 1427 02 December, 2020
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