Bangladesh Bank hikes MFS cash-in limit for remittance receivers

Staff Correspondent | Published: 00:00, Dec 03,2019

 
 

The Bangladesh Bank on Monday raised the cash-in limit of mobile financial service (MFS) for inward remittances.

Remittance up to Tk 1.25 lakh, including 2 per cent incentive, brought through the banking channel now can be deposited to a MFS account, said a BB circular issued on the day.

Customers are normally allowed to feed money into MFS account highest Tk 30,000 in five times a day, while the limits are Tk 2 lakh and 25 times a month.

BB officials said that the central bank relaxed the cash-in limit specifically for the remittance beneficiaries in rural areas.

As the remittance beneficiaries are mostly live in rural areas, the MFS is considered as one of the quickest way of proving them with financial services, prompting the central bank to ease the limit only for the purpose, they said.

As per the BB rules, remittance beneficiaries are entitled to get 2 per cent cash incentive against receipt of $1,500 without providing any document. For receiving the incentive for any higher amount, beneficiaries must provide documents.

However, other MFS transactions limit including the regular withdrawal will remain unchanged.

In case of person-to-person MFS transaction, the limit is Tk 25,000 for each day and maximum Tk 70,000 in a month.

In the fiscal year 2019-2020, the government introduced the 2 per cent cash incentive for the remittance beneficiaries to encourage expatriates sending money through legal channel.

As an immediate impact of the incentive, the inflow of remittance in the country increased by 22.5 per cent in July-November.

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