Inward remittances through Mobile Financial Services (MFS) have experienced a significant surge in recent times, according to data from Bangladesh Bank (BB).
The increase reflects the growing popularity of MFS, which includes platforms like Nagad and services such as bKash, Rocket, and Upay offered by scheduled banks.
According to Bangladesh Bank data, Tk. 11.02 billion in inward remittances were processed through MFS platforms in October 2024, with the e-money balance for the month reaching Tk. 139.22 billion.
In September, Tk. 10.21 billion in remittances were disbursed via MFS platforms, while the e-money balance stood at Tk. 127.30 billion. The e-money balance also marked a 9.37 percent increase in October compared to September.
Expatriate Bangladeshis sent Tk. 11.01 billion in remittances in August, compared to Tk. 7.14 billion in July.
The central bank data also stated that the number of registered MFS accounts reached 235.70 million, with 104.74 million accounts in urban areas and 130.97 million in rural regions by October 2024.
The number of transactions was 643.73 million in October compared to 591.65 million in September, representing an 8.80 percent increase in transaction volume for October this year.
MFS witnessed such an increase in October, with the total transaction volume reaching over Tk 1.55 trillion in October, compared to over Tk 1.45 trillion in September this year, the data show.
Among the various services offered by MFS operators, inward remittance is gaining notable traction, supported by government-provided cash incentives aimed at attracting higher remittance flows.
MFS accounts offer a versatile range of functionalities, allowing users to withdraw funds, conduct person-to-person transfers, top up mobile balances, settle utility bills and education fees, and make payments to merchants.
An official from a mobile financial service, speaking on condition of anonymity, stated that among the services provided by the MFS operators, inward remittance is gaining popularity day by day, and the government is providing cash incentives to attract more remittances.
Customer confidence in formal channels has significantly increased in recent times, contributing substantially to the rise in inward remittance, he said.
He noted that customers are also receiving higher dollar exchange rates when sending remittances to the country.
Additionally, cash-out charges have become more affordable, and customers are benefiting from instant fund transfer facilities. "Even politically influential individuals previously involved in hundi have now become inactive in the current scenario," he added.
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