Mobile banking affects remittance inflow thru' banking channel: BIBM report

Inflow of remittance through banking channel is falling as sending money home by migrant workers through informal channel like mobile banking is getting popular for quick delivery of money, according to a research report of BIBM, reports BSS.

"Hundi syndicate members are using mobile financial services such as bkash, Rocket, M cash and U Cash to control inflow of remittance. A section of migrant workers choosing this informal channel for quick delivery of money to their relatives in the country," said the report released at a workshop in the city Thursday.

Bangladesh Institute of Bank Management (BIMB) organised the workshop 'Increasing remittance flow through banking channel: Bangladesh perspective' at its auditorium in Mirpur.

Deputy Governor of Bangladesh Bank S K Sur Chowdhury attended it as the chief guest while BIBM director general Towfique Ahmed Choudhury presided over it.

A 6-member team led by Dr Shah Md Ahsan Habib presented the research report at the workshop.

The report said flow of remittances has witnessed a fall worldwide but in Bangladesh inward remittances has marked a significant fall due mainly to hundi syndicate who are using informal channels.

It said migrant workers use informal channels such as hundi to send home money for some reasons such as location of bank branches, delay delivery of money, lack of client friendly behavior of bank bankers, various documents, weekly holidays and illegal migration.

S K Sur Chowdhury said inward remittances has witnessed a slow growth over the last few years but in the last month it witnessed a 35 per cent growth and the central bank has been working to keep this flow stable.

"There is no reason to deny that a big portion of remittances is coming into the country through illegal channels. It is not possible to bring hundi under the control completely but it has to be checked in different ways and the central bank is looking for ways in this regard," Chowdhury added.