BB urged to slash security deposit for drawing arrangement abroad

The bankers have urged the central bank to slash security deposit for setting up new drawing arrangement abroad to expedite the inflow of remittance.

They also proposed to re-fix the security deposit ranging between US$15,000 and $10,000 from the existing level of $25,000 for making such an arrangement.

The appeal was made at a meeting of the Bangladesh Bank (BB)-authorised Dealers' Forum held at the central bank headquarters in Dhaka Wednesday with BB Executive Director Ahsan Ullah in the chair.

"We've sought opinions from the bankers as part of our ongoing efforts to expedite the flow of inward remittance from different parts of the world," a BB senior official told the FE after the meeting.

He also said the BB officials earlier discussed the issue with senior officials of 34 commercial banks.

The central bank has taken the initiative as the inflow of remittances decreased by 1.61 per cent to $14.23 billion after 13 years in the fiscal year (FY) 2013-14 from $14.46 billion a year ago.

Currently, there are 992 drawing arrangements with overseas banks, financial institutions and money transfer companies to facilitate inflow of remittance.

"We're now working to boost the flow of inward remittance in the current FY '15 through providing policy support to the stakeholders," another BB official said.

At the same meeting, the BB also asked the bankers to comply with rules and regulations relating to proper checking of over- and under-invoicing in the name of foreign trade.

In January last, the central bank formed a 65-member BB-authorised Dealers' Forum to communicate about liberalisation of foreign exchange policy with the commercial banks, particularly the authorised dealers.