Rural savings pile up on remittance inflow

Total deposits in areas outside the municipalities and city corporations stood at Tk3.4 lakh crore in June this year, up from Tk1.61 lakh crore at the beginning of 2016, according to the latest data released by the Bangladesh Bank. The surge in rural savings is mostly backed by remittance earnings as 90% of the inward remittances are distributed among beneficiaries in rural areas, the central bank’s statistics show.  Moreover, alternative transaction channels such as mobile banking and agent banking have brought financial services to the doorsteps of people living in rural and remote areas, bringing their money into the banking system. 

Source: https://www.tbsnews.net/economy/banking/rural-savings-pile-remittance-inflow-498878

Showing trade license not mandatory for small traders to open bank accounts

Bangladesh Bank has waived the provision of showing trade licenses in opening bank accounts by small traders, according to a recent circular of the bank. The name of the account will be ‘Personal Retail Account’ or ‘Private Retail Account’. This account can be opened in banks, mobile financial services (MFS), e-wallet service providers, and payment service providers (PSP). Small entrepreneurs can transact through such an account for commercial purposes, said the circular. A personal retail account can be opened only after submitting the documents required for e-KYC in bank account opening. There is no cost to open this account. Besides, the loan will also be available on the basis of the transactions. Even if the account is in MFS, the cash-out cost will be less. The Director of the Payment System Department of BB Masbaul Haque told UNB that there is an opportunity to open a ‘personal retail account’ without a trade license.

Source: https://thefinancialexpress.com.bd/trade/showing-trade-license-not-mandatory-for-small-traders-to-open-bank-accounts-1663504958

Tax return proof rules bent for students, loan-seekers

Rules for mandatory submission of proof of tax return to the scheduled commercial banks have been bent for students and loan-seekers to certain limits for their convenience. Following the relaxation by the National Board of Revenue (NBR) people not having taxable income won’t have to submit tax-return slips for borrowing up to Tk 2.0 million. Students will also be able to enjoy exemption from the mandatory provisions for credit-card transactions up to Tk 0.2 million. The income-tax policy wing of the NBR issued Sunday a special order, signed by Second Secretary Md Mohidul Islam Chowdhury, to this effect. The government imposed the mandatory provision in the current fiscal budget on the submission of tax-return slips for availing 38 types of services. However, the Association of Bankers Bangladesh (ABB) has requested the revenue board for revisiting the provision in case of marginal group of people and preventing accumulation of funds in the informal economy.

Source: https://thefinancialexpress.com.bd/trade/tax-return-proof-rules-bent-for-students-loan-seekers-1663556727