BB cuts remittance drawing security deposit by 40pc
The Bangladesh Bank (BB) relaxed the policy on drawing arrangement between offshore exchange houses and local banks and slashed the deposit to augment falling remittance receipts.
Following the relaxation the amount of security deposit for drawing arrangement came down to $10,000 from $25,000 while security deposit for Non-Resident Taka (NRT) account got trimmed down to Tk 0.20 million from Tk 0.50 million, according to a directives of the central bank issued late on Tuesday.
"We expect that such policy relaxations will help the overseas exchange houses in setting up fresh drawing arrangement with local banks," said a senior official of the bank.
All banks have already set up 1140 drawing arrangements abroad for collection of remittances from different parts of the world, according to the central banker.
He also said the central bank extended the policy supports in line with the bankers' requirements to expedite the inflow of remittances through banking channel.
The bankers urged the BB at a meeting on November 14 last to bring down the amount of security deposit for drawing arrangement to US$ 10,000 from the existing level of $25,000.
At the same meeting, the BB asked the banks for taking effective measures to revamp the flow of inward remittances from next month.
The central bank had taken the latest move as Prime Minister Sheikh Hasina had expressed her concern over downward projection of the inflow of remittances by the World Bank for the current calendar year.
The multilateral development-financing agency has projected that the flow of inward remittance will come down to US$14.9 billion by the end of 2016 from $15.39 billion a year ago, the official said.