The government has decided to increase the cash incentive on sending remittances to 2.5 percent from the existing 2 percent in order to encourage sending remittances through legal channels.

The decision, which came into effect from today (January 1, 2022), is expected to improve the overall living standards of common people, boosting the foreign currency reserves, checking money laundering, generating employment, said a Finance Ministry press release.

This increase of cash incentives against remittance is a gift from Prime Minister Sheikh Hasina to the expatriate Bangladeshi workers marking the New Year.

The release said the government first decided to provide 2 percent cash incentives against sending remittance in the FY20 which resulted in a healthy inward remittance amount of $18.20 billion which was 13 percent higher than the previous fiscal year (FY19).

In continuation of this, the inward remittance amount was $24.80 billion in the last fiscal year (FY21) which was also 36 percent higher than the previous fiscal year (FY20).