Efficient remittance services can significantly impact development by reducing trade imbalances. The Bangladesh government has established programs like exchange houses abroad and electronic funds transfer networks to facilitate remittances. Mobile financial services are now the easiest way for financial transactions but low-wage workers abroad cannot access them as they are linked to bank accounts. Regulators in remitting countries could allow exchange houses to provide mobile financial services to wage remitters. The Bangladesh government also encourages inward remittance flows by awarding Commercially Important Person designations to non-resident Bangladeshis and introducing awards for top remitters. It further encourages remitters to invest their savings in the country through various investment schemes.

1. Remittance services – impact on development and role of government
(how more efficient remittance services can impact development and what the
government role should be in this space)
1. Impact of efficient remittance service on development is beyond question. It
helps to reduce the gap of trade balance. Bangladesh Bank has initiated different
programs, as I have already mentioned earlier, such as drawing arrangement with
overseas exchange houses, establishment of our own exchange houses abroad,
establishment of Bangladesh Electronic Fund Transfer Networks (BEFTN),
online banking, Mobile Financial Services (MFS), agent banking, etc.
2. MFS in present days is the easiest way for financial transactions. The service is
more convenient compared to online payment gateway services. But presently
(low) wage earners working in developed countries are not able to avail MFS
since the service is linked to bank accounts. Regulators of remitting countries
may come forward with policy support to allow their exchange houses for
providing MFS to wage remitters.
3. Bangladesh Government is playing active role in encouraging inward flows of
remittances. Government is awarding NRBs with CIP (Comercially Important
Persons). Bangladesh Bank has also introduced awards for top remitters.
Bangladesh Government is encouraging them to place their savings in
Bangladesh in different investment schemes. The present investment windows
available in Bangladesh are Wage Earner’s Development Bond (Taka Bond), US
Dollar Investment Bond, US Dollar Premium Bond, Portfolio investment in
Stock Exchanges in Bangladesh, Purchase of shares (primary issue) under NRB
quota, etc.
4. With regards to export of manpower, Bangladesh Government is trying to
explore export market through Government to Government arrangement.
5. To be more efficient in remittance services, Bangladesh Bank will accommodate
changing environment.