Study blames mobile hundi for falling remittances thru banking channel

Staff Correspondent | Published: 00:05, Nov 10,2017

 
 

Bangladesh Bank deputy governor SK Sur Chowdhury speaks at a research workshop on ‘augmenting remittances through banking channel: Bangladesh context’ at the Bangladesh Institute of Bank Management in Dhaka on Thursday. BIBM director general Toufic Ahmad Choudhury was also present, among others. — New Age photo

A study of Bangladesh Institute of Bank Management on Thursday blamed Hundi through mobile financial services including bKash, Rocket, mCash and UCash for decreasing remittance through banking channel.
The study, conducted by a six-member team, identified distance of bank branches, delay in receiving money, misconduct by bankers, submission of various documents, weekly holidays of banks and illegal immigrants as the reasons for increasing remittance inflow through mobile Hundi.
The six-member team headed by BIBM director Shah Md Ahsan Habib presented the study at the seminar presided over by BIBM director general Toufic Ahmad Choudhury held in the auditorium of the institute in the city.
‘In Bangladesh, remittances declined by an estimated 11.1 per cent in 2016 in the face of lower oil prices and fiscal tightening in the GCC countries. Among other reasons, use of Illegal channel by the expatriates is doing harm to our country,’ Bangladesh Bank deputy governor Shitangshu Kumar Sur Chowdhury said.
He said that it would not be possible to stop Hundi totally, but BB is working to check the transactions through the illegal channel.
To ease the formal channel, BB has reduced the security deposit requirement for the exchange houses abroad to make arrangements for remittances with local banks, Shitangshu said.
The BB deputy governor hoped that Non-Resident Bangladeshis would come forward to know the importance of their money to be sent through banking channels.
BB former executive director Yasin Ali said that national economy was being hindered due to remittance inflow through illegal channels.
He suggested using mobile banking facilities for
remittance inflow saying that the area of mobile banking expanded many fold in last five years.
Helal Ahmed Chowdhury, former managing director of Pubali Bank, suggested bankers to be courteous with bank customers. 

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