The parliamentary standing committee on finance, in a meeting on Thursday, recommended the implementation of a proposed three per cent remittance incentive from the present 2.5 per cent, officials said.
The committee also advocated for non-cash incentives, such as issuing smart cards, which would grant remitters鈥� family members priority access to facilities at hospitals, airports, and other services, they added.
Committee chairman AHM Mustafa Kamal, who presided over the meeting at the parliament, stated that implementing these proposals would encourage remittance inflows through official channels and deter the use of unofficial channels like Hundi.
He also reminded that the committee had made this proposal in their previous meeting held last month.
Finance Minister Abul Hassan Mahmood Ali informed the committee members that the proposals were under scrutiny by the ministry then.
At present, remitters receive a 2.5 per cent incentive.
However, many banks have offered an additional incentive of up to 2.5 per cent to attract remittance through official channels.
The inflow of remittance for the period from July to April in the financial year 2023-24 reached $19.11 billion, compared to $17.57 billion in the same period in the financial year 2022-23.
Remittance significantly contributes to the country鈥檚 balance of payments.
However, its growth has slowed as remitters opt for Hundi to receive higher rates, exacerbating the current economic downturn amid a dollar shortage and decade-high inflation.
The committee also discussed the proposed 鈥楶ayment and Settlement System Bill-2024鈥� and recommended its finalisation. The bill, aimed at bringing all types of payments generated in banks and non-bank financial institutions under the supervision of Bangladesh Bank, was introduced in the parliament on May 6.
