Bangladesh earns billions of dollars every year in remittances, making it one of the largest sources of foreign earnings for the country. If you are a Bangladeshi citizen living in Saudi Arabia, UAE, UK, Malaysia, USA or elsewhere, sending money home to your family is one of your most important financial responsibilities.
But the way you send it makes all the difference. Use of unofficial channels, sometimes called “hundi”, is illegal under Bangladesh Bank regulations and involves serious legal risks for both sender and recipient. The good news is that legal channels are now faster, cheaper and more accessible than ever, and the government even offers a cash incentive for using them.
This guide explains exactly how to send money from abroad to Bangladesh safely, legally and at the best possible rate.
The 2.5% Government Remittance Incentive That You Need To Know
The Bangladesh government’s 2.5% cash incentive is one of the biggest reasons to use official channels. This means that for every 100 taka your family receives through a legal banking or licensed remittance channel, the government adds an extra 2.5 taka on top, at no cost to you.
The incentive is directly credited to the bank account or mobile wallet of the recipient, as the case may be. It covers personal remittances sent via banks and licensed money transfer operators. You stand to lose the entire amount and hundi transactions get nothing.
Best Ways to Send Money from Overseas to Bangladesh
There is no one best way for everyone. The right choice depends on where you are sending from, how fast you need the money to arrive and how your family will get it at home.
1. Bank to Bank Transfer (SWIFT or Wire Transfer)
You can directly transfer money from your overseas bank account through SWIFT Transfer if your family has a bank account with any scheduled bank in Bangladesh (Dutch-Bangla Bank, BRAC Bank, Islami Bank, Sonali Bank).
You will need:
•Your family member’s name (as it appears on the bank account)
•Their bank account
•Bank’s SWIFT code (can be found on bank’s website or at branch)
•The address of the bank’s branch
This method is reliable and counts for the 2.5% government incentive, but it may take 2 to 5 business days and may have transfer fees from your overseas bank.
2. Licensed Online Money Transfer Services
Bangladesh has a number of internationally licensed money transfer services authorised by Bangladesh Bank. They are usually faster and less expensive than a bank transfer.
Some popular choices are:
•Western Union — Easy to access, trusted and available at thousands of agent points across Bangladesh with cash pickup
•MoneyGram – comparable coverage, great for urgent transfers
•Wise (formerly TransferWise) – known for offering rates very close to the mid-market rate
•Remitly – fast transfers with a mobile-first experience, popular with Bangladeshis in the UK and USA bKash International – lets you transfer from certain countries direct to a recipient’s bKash mobile wallet in Bangladesh
Always check the Bangladesh Bank website before sending to make sure the service you are using is listed as an authorised remittance company.
3. Sending Directly to bKash or Nagad Mobile Wallets
The majority of families with less access to formal banking, especially in rural areas, find the most convenient way to send money is directly to a bKash or Nagad mobile wallet. The recipient can immediately use the money for everyday expenses, utility bills or mobile recharges without visiting a bank.
Some overseas remittance platforms offer direct transfer to bKash, such as Remitly and bKash’s own international remittance service. Nagad is also growing its international remittance partnerships.
This is ideal for the mobile-first users in Bangladesh who don’t have a bank account but will most likely have a smartphone and a mobile financial service account.
Checklist: How to Send Money Overseas to Bangladesh Step-by-Step Guide
Before making your first transfer, please follow these steps:
•Choose how your recipient prefers to receive (Bank Account, bKash, Nagad or Cash Pickup)
•Gather the correct bank account details or mobile wallet number
•Make sure you compare exchange rates and fees from at least two or three services before you decide
•Check whether the service is licensed and approved by Bangladesh Bank
•Complete KYC (Know Your Customer)
verification on the platform if it is your first time sending
•Make sure you enter the recipient’s details correctly, mistakes can cause delays or failed transfers
•Retain your transaction receipt/reference number until the money is confirmed received.
•If applicable, ask your recipient to acknowledge receipt of the 2.5% government incentive
What not to do when sending money to Bangladesh from abroad
Avoid using hundi or informal hawala networks. These are illegal under Foreign Exchange Regulation Act and Bangladesh Bank rules. Both sender and receiver can face legal consequences if caught and your money is not protected if something goes wrong.
Never share your transaction PIN or OTP with anyone pretending to be a bank or transfer service.
Don’t transact with unlicensed money collectors who operate on social media platforms or WhatsApp groups even if they offer you attractive rates.
How to Get the Best Exchange Rates
The rates of exchange vary daily. Even a little change in rate could mean hundreds of taka more or less to your family. Here are some practical tips:
•Check rates at remittanceprices.worldbank.org, a free service provided by the World Bank to show live rates to send money to Bangladesh
•Send a bit more, less often to avoid transfer fees
•Weekday transfer Some services provide better rates outside weekend hours
•Sign up for rate alerts on apps like Wise or
•Remitly and send when the rate is favourable.
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Conclusion: The Smart and Legal Way to Send Money from Abroad to Bangladesh
Mobile wallets, online platforms and bank transfers are all fighting for your business and sending money from abroad to Bangladesh has become faster and cheaper than ever before. By choosing a channel approved by Bangladesh Bank, you secure your money, contribute to the national economy and your family gets an additional 2.5% from the government. Begin comparing your options today, and make sure every taka you send gets home safely.
Summary:
Millions of Bangladeshis living abroad send money home every year. This practical guide explains the best legal channels to send remittances to Bangladesh, including banks, bKash, Nagad, and licensed money transfer services, with tips to get the best rate.
