A new initiative has been launched by the Government of Bangladesh, whereby all direct transfers into the country will receive an additional 2.5% straight to the recipient's account. The Bangladeshi Finance Minister AHM Mustafa Kamal outlined two main reasons for this:
- remove the burden of increased expenses in sending remittances;
- encourage bringing in remittances through legal channels.
How does the 2.5% affect my transfer?
All transfers to Bangladesh will automatically benefit from the 2.5% incentive. The recipient in Bangladesh will receive the extra 2.5% from their bank in cash or into their bank accounts. This applies to all transfer methods offered by TapTap Send (bank transfers and mobile transfers through BKash)
E.g.: If you send 100,000 Taka, your recipient in Bangladesh will receive 102,500 Taka
Can the 2.5% initiative be used numerous times?
Yes, there are no limits to the number of transfers that can benefit from the 2.5% initiative.
E.g.: Every month, you send money to your family in Bangladesh. They receive the additional 2.5% every month.
Are there any documents required?
For transfers below 500,000 Taka, no documents are required
For transfers above 500,000 Taka, the beneficiaries will have 5 days to submit a copy of the following documents:
- The remitter’s passport
2.a. If employed, an appointment letter from the employer
2.b If self-employed, the business license
If you send over 500,000 Taka and do not wish to benefit from the 2.5% incentive, no documents are required.
E.g.: If you send 100,000 Taka, your recipient in Bangladesh will receive 102,500 Taka. No further steps are required. If you send 600,000 Taka in a single transaction and are employed, your recipient in Bangladesh will need to provide a copy of your passport and a letter confirming your employment status in order to receive the 2.5% incentive.
When do the recipients receive the additional 2.5%?
The additional 2.5% may be added to your transaction instantly by the local bank in Bangladesh. However, this is entirely dependent on branch policy and usually takes 2-3 weeks to be processed and ready to withdraw from the beneficiaries bank account.
Please speak to the local bank branch manager if the incentive is not added. The Bangladesh central bank warned that local banks can be fined for not following the correct procedure on remittance incentives.