The cash incentive would be effective from July 1 this year
Bangladesh Bank (BB) on Tuesday issued a circular on providing 2% cash incentive for money to be remitted through banking channel into the country.
The cash incentive would be effective from July 1 this year, said the circular, issued from the foreign exchange policy department (FEPD) of the central bank.
"Foreign remittance worth of $1,500 or equivalent currency will not require any documents to receive incentive. Cash incentive for any amount above $1,500 will be subject to providing some documents," reads the FEPD circular.
The documents include passport copy of expats, appointment letter, certificate given from Bureau of Manpower, Employment and Training (BMET) and copy of trade licence in case of remittance generated from business proceeds.
The government announced cash incentive for inward remittance in the current budget.
In the circular, the central bank said the objective of providing cash incentives was to stimulate remitters to continue flow of foreign remittance in larger volume.
"Remittance is largely contributing to advancing country's economy. The government wants to continue the inflow," the BB said.
It said banks would face punitive actions for harassment or delay in disbursing cash incentive.