BB asks 10 banks to submit action plan for raising remittance from Malaysia

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The central bank has asked ten commercial banks to submit their individual action plans for increasing the flow of inward remittances from Malaysia, officials said.

The instruction was made at a meeting held at the central bank recently to help boost the inflow of remittances from Malaysia through reviewing the overall latest situation.

"We will provide necessary policy support to the banks after receiving their action plans," a BB senior official told the FE Tuesday, adding that at least three commercial banks have already submit their plans to the central bank.

The banks, including three state-owned and one foreign, are actively involved in remitting funds from Malaysia, the official added.

"We have issued at least 17 permissions recently to local commercial banks for setting up drawing arrangement with Malaysian exchange houses or money transfer companies to strengthen the inflow of remittances from the country," another BB official told the FE.

One more private commercial bank has already applied to the department concerned of the BB seeking permission to establish drawing arrangement with a Malaysia-based exchange house, he added.

Currently, Bangladeshis, who are working and living in Malaysia, are sending their income through eight Malaysian banks and exchange houses.

The country received a total of US$ 92.44 million as remittances from Malaysia in fiscal year 2007-08 as against $11.84 million of the previous fiscal, according to the central bank statistics.

"We expect that the inflow of remittances from the country would touch $200 million by the end of this fiscal," the official said quoting the commercial banks estimation.

He also said the bankers informed at the meeting that they would able to receive at least $200 million as remittances from the country by the end of this fiscal, if the existing situation continues.