BB relaxes rules to boost remittance inflow

The central bank has relaxed the banking rules governing remittance inflows amid an ongoing foreign currency crunch.

Banks can now establish drawing arrangements, an official channel to receive remittances, with exchange houses abroad without prior permission, Bangladesh Bank said on Wednesday.

They must, however, provide detailed information about the arrangements afterwards.

Letters of reference or certificates from Bangladeshi missions overseas will no longer be needed to make drawing arrangements, the central bank added.

A drawing arrangement between a bank in Bangladesh and an overseas exchange house allows Bangladeshi nationals to remit their earnings to either their own bank accounts or their relatives' back home.

Banks, however, remain barred from imposing charges on beneficiaries while disbursing remittances.