Every month, millions of Bangladeshi workers abroad face the same quiet calculation: how do I send money home in a way that’s fast, safe, and doesn’t shrink by the time it reaches my family?
What most expats don’t realize is that the Bangladeshi government has essentially built a reward into this process. Send money the right way — through a regulated, official channel — and you automatically receive a 2.5% bonus on top of everything you send. No applications. No waiting. No forms to chase.
This guide breaks down exactly how that incentive works, who qualifies, what to watch for, and how to make sure you’re not leaving money on the table every time you send a remittance home.
What Is Bangladesh’s 2.5% Remittance Incentive — and Why Does It Exist?
The Government of Bangladesh first introduced a 2% cash incentive on inward remittances in 2019, establishing a formal reward for overseas workers who send money through regulated financial channels. Three years later, at the start of 2022, the government raised that rate to 2.5% — a recognition of just how critical diaspora remittances had become to the national economy, and a signal that the policy was here to stay.
The incentive is active and confirmed for 2026.
Here’s the practical reality: if you send $1,000 to Bangladesh through an approved channel, your family receives $1,025. That extra $25 comes directly from the Bangladesh government — not from RemitChoice, not from any promotional offer, but from national policy designed to protect both senders and receivers.
The incentive exists for three concrete reasons:
First, to combat informal money transfer systems — known locally as hundi — which operate outside banking regulations and expose senders to significant fraud risk, with no recourse if money goes missing.
Second, to strengthen Bangladesh’s foreign currency reserves. When remittances flow through official banking networks, the country’s central bank can track, manage, and deploy those funds more effectively for national economic stability.
Third, to reward the Bangladeshi diaspora. Overseas workers sent over $21.6 billion home in 2024 according to Bangladesh Bank data, and that figure continues to grow. The government recognizes this contribution and has structured the incentive as direct acknowledgment of it.
The incentive has been continuously active since 2019 — first at 2%, then raised to 2.5% from 2022 onwards — and remains fully in effect through 2026. It is not a promotion — it is government policy.
Who Qualifies for the 2.5% Bonus?
Eligibility is broader than most expats assume. You qualify if:
- You hold Bangladeshi citizenship
- You are currently residing and working abroad (this includes students, permanent residents, and workers on temporary visas)
- Your remittance is sent through an officially licensed money transfer operator or banking institution
There is no minimum transfer amount required to trigger the incentive. However, there is typically a yearly cap of BDT 500,000 per recipient — so it’s worth coordinating with your family on how transfers are structured across the year if you send regularly.
If you send through an unlicensed operator, an informal network, or cash hand-to-hand through an agent operating outside the banking system, you will not receive the incentive. This is precisely why the channel you choose matters as much as the amount you send.
How the Incentive Is Actually Credited — Step by Step
One of the most common questions expats ask is: do I have to apply for this bonus separately?
The answer, in most cases, is no. When you send through a regulated service like RemitChoice that is integrated with Bangladesh’s banking infrastructure, the 2.5% is automatically credited when the funds are received on the Bangladesh side. Your recipient either receives it directly into their bank account or mobile wallet alongside the original transfer amount.
Here’s the process in practical terms:
Step 1 — Choose a licensed transfer service. This is non-negotiable. The channel must be regulated in your country of residence and connected to Bangladesh’s formal banking system. RemitChoice operates under full regulatory compliance in each market it serves, and every transfer is routed through verified banking networks.
Step 2 — Enter your recipient’s information accurately. The incentive disbursement requires that the recipient’s full name matches their National ID (NID), and that their bank account or mobile wallet details are correct. Mismatches can delay both the transfer and the bonus credit.
Step 3 — Send your transfer. Once initiated through a regulated channel, the transfer is processed and reported to the relevant banking authorities in Bangladesh.
Step 4 — The bonus is automatically applied. Your family receives the original amount plus the 2.5% incentive. Most transfers through RemitChoice are completed within minutes, with the bonus included.
Step 5 — Confirm receipt. RemitChoice provides real-time tracking and delivery confirmation so you know the exact moment your family receives their money.
The Hidden Cost of Using the Wrong Channel
The 2.5% incentive is the most visible reason to use a regulated service — but it’s not the only one.
Informal transfer networks, while sometimes marketed as faster or cheaper, carry risks that quietly outweigh any apparent savings:
No legal protection. If an informal agent disappears, charges you an undisclosed fee, or delivers the wrong amount, you have no recourse. There is no regulator to complain to, no insurance to claim, and no way to recover lost funds.
Exchange rate manipulation. Informal operators frequently quote attractive rates upfront, then apply a spread at the point of transfer that isn’t disclosed. The rate you see is often not the rate your family receives.
Compliance risk. In many countries, using unlicensed money transfer services is itself a legal violation — putting the sender at risk of fines or account restrictions.
Loss of the incentive. Every transfer through an informal channel is a transfer without the government bonus. If you send $500 a month through informal channels, you’re forfeiting approximately $150 a year in guaranteed government money.
The math on using a proper channel is simply better — not just ethically, but financially.
Why Remittance Currency and Timing Both Matter
The 2.5% incentive is calculated on the value of foreign currency received in Bangladesh, converted at the official exchange rate. This means the exchange rate you get from your transfer provider directly determines how much the 2.5% is worth in BDT.
A provider offering a poor exchange rate isn’t just charging you implicitly on the conversion — they’re also reducing the base amount on which the government calculates your incentive. Two remittances of identical foreign currency value can result in meaningfully different BDT amounts depending on the rate applied.
RemitChoice applies live, competitive exchange rates with full transparency before you confirm your transfer. What you see is what your family receives — no last-minute adjustments, no hidden spread.
Timing also matters. Currency markets fluctuate, and some days are simply better than others to send. RemitChoice’s rate alerts allow you to monitor exchange rates and send when conditions are favorable, giving you more control over the real value of your transfer.
Frequently Asked Questions
Is the 2.5% incentive still active in 2026?
Yes. The incentive has been uninterrupted since its introduction in 2019 — initially at 2%, then raised to 2.5% from January 2022. It remains fully active in 2026 as a confirmed pillar of Bangladesh’s national remittance policy.
Does the incentive apply to mobile wallet transfers, or only bank accounts?
The incentive applies to both bank account deposits and licensed mobile financial service wallets (such as bKash and Nagad) — provided the transfer comes through an officially registered channel.
What if my family doesn’t have a bank account?
Mobile wallet options like bKash have significantly expanded access for recipients without traditional bank accounts. RemitChoice supports delivery to mobile wallets, which also qualify for the government incentive.
Is there a cap on how much I can send?
There is no government-imposed cap on the amount you can send. However, the incentive bonus is typically subject to a yearly ceiling of BDT 500,000 per recipient per year. For high-volume senders, it’s worth planning transfers with this in mind.
What happens if I send through an unlicensed service by mistake?
You will not receive the 2.5% incentive. Additionally, transfers through unlicensed operators are not protected under financial consumer protection laws. RemitChoice is fully licensed and regulated — every transfer is eligible for the government bonus.
Do I need to notify anyone or file paperwork to claim the bonus?
No. When you use a regulated service like RemitChoice, the incentive is automatically applied by the receiving bank or financial institution in Bangladesh. There is no separate claim process.
Sending Money Home with Remit Choice
RemitChoice was built around a simple belief: sending money to your family should cost as little as possible, take as little time as possible, and expose you to as little risk as possible.
Every transfer through RemitChoice is:
- Regulated and licensed in your country of residence, ensuring full eligibility for the government incentive
- Competitively priced, with transparent exchange rates displayed before you confirm
- Fast, with most transfers completed within minutes
- Trackable, with real-time delivery confirmation sent directly to you
- Supported, with a dedicated customer team available when you need them
Getting started takes under five minutes. Create your free RemitChoice account, add your recipient’s details once, and you’re ready to send — with every subsequent transfer taking seconds.
The Bottom Line
The 2.5% government remittance incentive is one of the most underused financial benefits available to Bangladeshi expats. It requires no application, no paperwork, and no waiting — only the decision to send through a channel that qualifies.
Every month you send through an informal or unregulated service is a month the 2.5% bonus goes unclaimed. Over a year of regular remittances, that adds up to a meaningful amount — money that belongs to your family and is simply waiting to be received.
RemitChoice makes claiming it straightforward. Licensed, transparent, fast, and built for expats who deserve more from every transfer they make.
Send smarter. Your family receives more.
RemitChoice is a regulated money transfer service. Exchange rates and transfer fees are displayed in full before any transaction is confirmed. The 2.5% government incentive has been active since 2019 and raised to its current rate in January 2022; it remains subject to Bangladesh Bank policy, which may be updated. Always verify current terms with your transfer provider.
