Final Flyer-Finlit 5.5 X

MONEY TALKS, LEARN ITS LANGUAGE FINANCIAL LITERACY ! Promote entrepreneurship and set up of enterprises Minimize the negative effect of migration: ! Lack of psychological/emotional preparation for and access to finance. ! reintegration/lack of emotional bond with the family Financial literacy is knowledge about personal Discuss family issues that drain resources and assist management of finances. It gives the twin benefits of the migrants and family in coping with negative impact ! Lack of economic opportunities in communities of origin protecting from financial frauds as well as planning for BENEFITS OF FINANCIAL LITERACY of migration on the family relations MIGRATION financially secured future. Financial literacy gives Basic financial literacy helps you become self-sufficient SETTING FINANCIAL GOAL consumers the necessary knowledge and skills required and achieve financial stability. This includes being able Migration is a way to move from one place to another in to assess the suitability of various financial products and to save money, distinguish the difference between order to live and work. Movement of people from their Financial Goal Year 10 investments available in the financial market. wants and needs, manage a budget, pay the bills, buy a home to another city, state or country for a job, residency home, pay for college and plan for retirement. Literacy or some other reasons is called migration. REASONS TO PROVIDE FINANCIAL helps you create a realistic roadmap that will take them Year 8 EDUCATION FOR MIGRANTS AND THEIR through their daily lives and make good financial SOCIAL IMPACTS OF MIGRATION FAMILIES decisions. After arriving in the host country, migrants may Year 5 experience various social issues such as difficulty in ! Maximize the benefits of better economic and Understanding your finances help reduce the risk of To Do adjusting to new work and life environment, language employment situations in the host country for the becoming a victim of fraud. Some tactics are easy to Your goal should be SMART Year 3 S - Specific barriers, lack of knowledge about and access to health long-term livelihood of migrants and their families believe, especially when they’re coming from someone M - Measurable A - Achievable and psycho-social services, loss of social status, ! Facilitate integration into the host countries and who seems to be knowledgeable and well-intended. A R - Result oriented T - Time-bound discrimination and marginalisation. communities and reintegration in the origin country or basic level of financial education will help you recognize Year 1 community the red flags and at the very least, talk with a trusted ECONOMIC IMPACTS OF MIGRATION advisor before making any commitment. ! Reduce wealth inequality through remittances BARRIERS TO REINTEGRATION The economic effects of migration vary widely. Sending ! Encourage effective use of remittances FINANCIAL LITERACY ADDRESSES THE 2 ! Lack of savings for long-term development of the countries may experience both gains and losses in the ! Foster long-term investment and savings ASPECTS OF MIGRATION migrants and their families short term but may stand to gain over the longer term. For receiving countries, temporary worker programs help ! Availability and equality of opportunities to access Maximize the benefits of migration: ! Failure in business/investments to address skills shortages but may decrease domestic financial services ! Proper use of remittance through budgeting, goal ! Family issues that drain resources wages and add to public welfare burden. setting and financial planning 02 03 FINANCIAL LITERACY ! Promote entrepreneurship and set up of enterprises Minimize the negative effect of migration: ! Lack of psychological/emotional preparation for and access to finance. ! reintegration/lack of emotional bond with the family Financial literacy is knowledge about personal Discuss family issues that drain resources and assist management of finances. It gives the twin benefits of the migrants and family in coping with negative impact ! Lack of economic opportunities in communities of origin protecting from financial frauds as well as planning for BENEFITS OF FINANCIAL LITERACY of migration on the family relations MIGRATION financially secured future. Financial literacy gives Basic financial literacy helps you become self-sufficient SETTING FINANCIAL GOAL consumers the necessary knowledge and skills required and achieve financial stability. This includes being able Migration is a way to move from one place to another in to assess the suitability of various financial products and to save money, distinguish the difference between order to live and work. Movement of people from their Financial Goal Year 10 investments available in the financial market. wants and needs, manage a budget, pay the bills, buy a home to another city, state or country for a job, residency home, pay for college and plan for retirement. Literacy or some other reasons is called migration. REASONS TO PROVIDE FINANCIAL helps you create a realistic roadmap that will take them Year 8 EDUCATION FOR MIGRANTS AND THEIR through their daily lives and make good financial SOCIAL IMPACTS OF MIGRATION FAMILIES decisions. After arriving in the host country, migrants may Year 5 experience various social issues such as difficulty in ! Maximize the benefits of better economic and Understanding your finances help reduce the risk of To Do adjusting to new work and life environment, language employment situations in the host country for the becoming a victim of fraud. Some tactics are easy to Your goal should be SMART Year 3 S - Specific barriers, lack of knowledge about and access to health long-term livelihood of migrants and their families believe, especially when they’re coming from someone M - Measurable A - Achievable and psycho-social services, loss of social status, ! Facilitate integration into the host countries and who seems to be knowledgeable and well-intended. A R - Result oriented T - Time-bound discrimination and marginalisation. communities and reintegration in the origin country or basic level of financial education will help you recognize Year 1 community the red flags and at the very least, talk with a trusted ECONOMIC IMPACTS OF MIGRATION advisor before making any commitment. ! Reduce wealth inequality through remittances BARRIERS TO REINTEGRATION The economic effects of migration vary widely. Sending ! Encourage effective use of remittances FINANCIAL LITERACY ADDRESSES THE 2 ! Lack of savings for long-term development of the countries may experience both gains and losses in the ! Foster long-term investment and savings ASPECTS OF MIGRATION migrants and their families short term but may stand to gain over the longer term. For receiving countries, temporary worker programs help ! Availability and equality of opportunities to access Maximize the benefits of migration: ! Failure in business/investments to address skills shortages but may decrease domestic financial services ! Proper use of remittance through budgeting, goal ! Family issues that drain resources wages and add to public welfare burden. setting and financial planning 02 03 MIGRATION AND SUSTAINABLE Remittances can be used for any type of payment REMITTANCE FLOW IN BANGLADESHi including invoices or other obligations. But the term is DEVELOPMENT GOALS typically used to refer to money sent to family members In 2015, member states of the United Nations issued a by the migrant, back in his or her home country. call to action to eradicate global poverty, reduce economic inequality and place the world on a more sustainable pathway; the 2030 Agenda for Sustainable Development. This comprehensive undertaking affirms the need to reach 17 specific Sustainable Development Goals (SDGs) and proposes several ways to mobilize the additional resources required to realize this ambitious – but achievable – agenda. Of these, SDG 10 (reduce inequality within and among countries) specifically refers to safe migration. SDG-10 has ten targets and one of the most important targets is 10.c which means that by 2030, the transaction costs of migrant remittances shall be reduced to less than 3% and remittance corridors with costs higher than 5% shall be eliminated.

REMITTANCE A remittance refers to the money that is sent or transferred to another party. The term is derived from the word 'remit', which means 'to send back'. Remittances can be sent via a wire transfer, electronic payment system, mail, draft or cheque. 04 05 MIGRATION AND SUSTAINABLE Remittances can be used for any type of payment REMITTANCE FLOW IN BANGLADESHi including invoices or other obligations. But the term is DEVELOPMENT GOALS typically used to refer to money sent to family members In 2015, member states of the United Nations issued a by the migrant, back in his or her home country. call to action to eradicate global poverty, reduce economic inequality and place the world on a more sustainable pathway; the 2030 Agenda for Sustainable Development. This comprehensive undertaking affirms the need to reach 17 specific Sustainable Development Goals (SDGs) and proposes several ways to mobilize the additional resources required to realize this ambitious – but achievable – agenda. Of these, SDG 10 (reduce inequality within and among countries) specifically refers to safe migration. SDG-10 has ten targets and one of the most important targets is 10.c which means that by 2030, the transaction costs of migrant remittances shall be reduced to less than 3% and remittance corridors with costs higher than 5% shall be eliminated.

REMITTANCE A remittance refers to the money that is sent or transferred to another party. The term is derived from the word 'remit', which means 'to send back'. Remittances can be sent via a wire transfer, electronic payment system, mail, draft or cheque. 04 05 Year-wise Overseas Employment (1976 to 2020) Year-wise Remittances (Million USD) Earned (1976 to 2020) 18,354.94 currency reserve. It also has a great contribution to Utilisation patterns of remittances in Bangladesh 1,200,000 1,008,525 20,000.00 Gross Domestic Product (GDP) of the country. 15,544.68 15,270.99 18,000.00 14,942.57

14,163.99 Sending family 875,055 13,832.13 13,609.77 13,526.84 1,000,000 832,609 member abroad 16,000.00 12,168.09 757,731 Community

734,181 NECESSARY DOCUMENTS OF A NEW 7% 11,004.73 700,159 development 14,000.00 10,717.73 Furniture 800,000 activities 607,798 BANK ACCOUNT FOR REMITTANCE 1% 568,062 555,881 12,000.00 8,979.00 0% Send relative Others 475,278 6,964.55 600,000 425,684 10,000.00 for pilgrimage 6,562.71 409,253 1%

390,702 1. Banks prescribed account opening application 381,516

5,484.08 1% 8,000.00 Gift/donation Food and clothes 272,958 268,182 267,667 4,249.87 form 254,190 252,702 244,508 225,256 231,077

3,565.31 to relatives 400,000 222,686 211,714 3,177.63 189,060 187,543 2,847.79 188,124

186,326 20%

181,218 6,000.00

147,156 1% 2,071.03

1,954.95 2. National ID card/passport 1,806.63 103,814 1,599.24 1,525. 101,724 1,355.34 Social ceremonies 1,201.52 1,153.54 4,000.00 1,009.09 77,694 68,121 68,658 74,017 62,762 59,220 901.97 55,787 56,714 781.54 769.30 763.90 757.84 747.60 200,000 500.00 627.51 576.20 500.00 30,076

490.77 3. Copies of passport size photo 22,809 9% 24,495 0 15,725 304.88 172.06 301.33 106.90 Medical treatment 3 6,087 23.71 2,000.00 82.79 4. Copy of identity card of nominee (national id 3% - - Insurance card/passport/birth certificate) 0% Child education

14,163.99 Sending family 875,055 13,832.13 13,609.77 13,526.84 1,000,000 832,609 member abroad 16,000.00 12,168.09 757,731 Community

390,702 1. Banks prescribed account opening application 381,516

5,484.08 1% 8,000.00 Gift/donation Food and clothes 272,958 268,182 267,667 4,249.87 form 254,190 252,702 244,508 225,256 231,077

3,565.31 to relatives 400,000 222,686 211,714 3,177.63 189,060 187,543 2,847.79 188,124

186,326 20%

181,218 6,000.00

147,156 1% 2,071.03

1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3% 5. Copy of a passport size photo of a nominee Savings/fixed deposit Agriculture 6. Photocopy of passport 3% land purchase 11% ii advancement. Remittance has a significant role to 7. Copy of visa BALANCE OF PAYMENT Business 8. Contract agreement investment maintain balance of payment and to enrich foreign Release mortgage land Migration plays a vital role in the national economy 5% Repayment of loan 2% mainly in two major ways; firstly, it reduces UTILISATION PATTERN OF (other purpose) Taking mortgage land Remittance, its Impact on balance of payment 3% 2% iii Homestead land purchase unemployment and secondly, migration results in REMITTANCE 1% Year Remittance Import Export Trade balance Repayment of loan Home construction remittance flows for the country. The migration has (for migration) & repair 2002-2003 3.06 9.66 6.44 3.11 A significant portion of remittance is used for 11% 15% shown steady growth over the year that is favorable to purchase of land and home construction. While the development of Bangladesh; as inflow of remittance 2003-2004 3.37 10.86 7.6 3.25 2004-2005 3.85 13.18 8.65 4.52 going abroad, a migrant worker usually manages has increased every year. The links between migration the fund for his or her migration either by selling or iv and remittances are self-evident. Both have a strong 2005-2006 4.8 4.75 10.53 4.22 mortgaging land or other properties. So, to retrieve BOOST UP REMITTANCE INFLOW 2006-2007 5.98 17.16 12.18 4.98 correlation to poverty reduction in home countries. the sold or mortgaged land, some portion of 2007-2008 7.92 21.63 14.11 7.52 A number of steps have been taken by Bangladesh Bank to boost Remittance has become an important aspect for the remittance is used. See below table for more up remittance inflow. Some notable steps are: 2008-2009 9.69 22.51 15.57 6.94 information: developing countries like Bangladesh for socio-economic 2009-20010 10.97 23.74 16.2 7.53 ! 40 banks have been allowed for establishing 885 drawing 06 07 arrangements with 300 exchange houses all over the understanding to remove “Pay Cash Exclusivity Clause” TYPE OF LOAN FOR MIGRANTS FROM However, you must first learn to SAVE before you can world for collecting remittances, of which or any other such clause that can put a ceiling on the invest or pay for the insurance. approximately 650 drawing arrangements with 250 competition in the market among the related parties. PROBASHI KALLYAN BANK exchange houses are operative now. ! Migration loan TIPS TO ACHIEVE YOUR SAVINGS GOAL ! Some banks have already established their offices LOAN ! Rehabilitation loan ! Increase income abroad to collect remittances by their own. A loan is when you receive money from a friend, bank or ! Decrease expenses financial institution in exchange for future repayment of SAVINGS ! 69 exchange houses/branch offices/representative ! Increase the years to save the principal, plus interest. The principal is the amount Savings is not the opposite of spending. It is simply offices abroad of 24 local banks are permitted for ! Lower the amount required for the goal onward sending of remittances to the country. you borrowed and the interest is the amount charged for means keeping your money to spend it in the future. receiving the loan. ! Diversify investment to earn higher rate of return ! Bangladesh Electronic Funds Transfer Network IMPORTANT TIPS IN SUCCESSFUL SAVING (BEFTN) was inaugurated from 28 February 2011, with CHARGES AND RULES FOR REPAYING ! other funds transfer activities, will facilitate the quick Save before you spend. MIGRATION LOAN FROM PROBASHI ! Recognize your NEEDS versus your WANTS. delivery of remittances to beneficiaries through bank- v to-bank clearing systems. KALLYAN BANK Write your budget and life goals and stick to your ! 16 MFIs are allowed to perform the job of remittance ! In case of migration loan, the interest rate is only 09 financial plan. distribution. Banks (Bank Asia Ltd., BRAC Bank Ltd., percent. Dhaka Bank Ltd., Trust Bank Ltd., Mercantile Bank ! A maximum grace period of 02 (two) months is given INSURANCE Ltd., Citibank N.A. and Sonali Bank Ltd.) are now from the day of payment. Even if you don’t have the savings, your insurance will allowed to distribute remittance using the countrywide ! The maximum loan repayment period is two years (in give your loved ones the money and social protection outlets of different mobile operators like 2 % CASH INCENTIVE ON THE REMITTING 22 monthly installments the loan has to be repaid) as that they need. Grameenphone, Banglalink & Robi. vi per the visa validity granted in the country. Such as Therefore… AMOUNT ! To increase the competition among the money Saudi Arabia, United Arab Emirates, Bahrain, ! Wage earners’ remittance worth BDT 150,000 or Saving is not the end itself. transmitters, commercial banks are instructed to Mauritius, Brunei, Qatar, Italy, Europe, etc. equivalent currency sent by wage earner through amend the contracts with some multinational money ! One must learn to SAVE and INVEST and INSURE exchange houses/banks will not require any In case of Singapore, the loan has to be repaid in 10 oneself. remitters/exchange houses through their mutual installments within 01 year. documents to get 2% cash incentive as applicable. 08 09 arrangements with 300 exchange houses all over the understanding to remove “Pay Cash Exclusivity Clause” TYPE OF LOAN FOR MIGRANTS FROM However, you must first learn to SAVE before you can world for collecting remittances, of which or any other such clause that can put a ceiling on the invest or pay for the insurance. approximately 650 drawing arrangements with 250 competition in the market among the related parties. PROBASHI KALLYAN BANK exchange houses are operative now. ! Migration loan TIPS TO ACHIEVE YOUR SAVINGS GOAL ! Some banks have already established their offices LOAN ! Rehabilitation loan ! Increase income abroad to collect remittances by their own. A loan is when you receive money from a friend, bank or ! Decrease expenses financial institution in exchange for future repayment of SAVINGS ! 69 exchange houses/branch offices/representative ! Increase the years to save the principal, plus interest. The principal is the amount Savings is not the opposite of spending. It is simply offices abroad of 24 local banks are permitted for ! Lower the amount required for the goal onward sending of remittances to the country. you borrowed and the interest is the amount charged for means keeping your money to spend it in the future. receiving the loan. ! Diversify investment to earn higher rate of return ! Bangladesh Electronic Funds Transfer Network IMPORTANT TIPS IN SUCCESSFUL SAVING (BEFTN) was inaugurated from 28 February 2011, with CHARGES AND RULES FOR REPAYING ! other funds transfer activities, will facilitate the quick Save before you spend. MIGRATION LOAN FROM PROBASHI ! Recognize your NEEDS versus your WANTS. delivery of remittances to beneficiaries through bank- v to-bank clearing systems. KALLYAN BANK Write your budget and life goals and stick to your ! 16 MFIs are allowed to perform the job of remittance ! In case of migration loan, the interest rate is only 09 financial plan. distribution. Banks (Bank Asia Ltd., BRAC Bank Ltd., percent. Dhaka Bank Ltd., Trust Bank Ltd., Mercantile Bank ! A maximum grace period of 02 (two) months is given INSURANCE Ltd., Citibank N.A. and Sonali Bank Ltd.) are now from the day of payment. Even if you don’t have the savings, your insurance will allowed to distribute remittance using the countrywide ! The maximum loan repayment period is two years (in give your loved ones the money and social protection outlets of different mobile operators like 2 % CASH INCENTIVE ON THE REMITTING 22 monthly installments the loan has to be repaid) as that they need. Grameenphone, Banglalink & Robi. vi per the visa validity granted in the country. Such as Therefore… AMOUNT ! To increase the competition among the money Saudi Arabia, United Arab Emirates, Bahrain, ! Wage earners’ remittance worth BDT 150,000 or Saving is not the end itself. transmitters, commercial banks are instructed to Mauritius, Brunei, Qatar, Italy, Europe, etc. equivalent currency sent by wage earner through amend the contracts with some multinational money ! One must learn to SAVE and INVEST and INSURE exchange houses/banks will not require any In case of Singapore, the loan has to be repaid in 10 oneself. remitters/exchange houses through their mutual installments within 01 year. documents to get 2% cash incentive as applicable. 08 09 ! For wage earners’ remittance above BDT 150,000, Civil society beneficiary need to claim the incentive. If the beneficiary and remitter are the same person and CSOs and microfinance organization offer migration residing abroad, then the beneficiary will communicate loans for returnees wishing to emigrate. directly over phone or e-mail to his/her bank branch in Bangladesh for claiming cash incentive. Nobody plans to fail, ! If the remitter is sending money to beneficiary in some just fail to plan Bangladesh (the beneficiary is other than remitter and the amount is more than BDT 150,000), the beneficiary in Bangladesh is required to claim incentive from his/her bank in Bangladesh. INVESTMENT CREATING SCOPES FOR INVESTMENT ! Correspondent bank/payee bank may ask beneficiary Saving is not enough; you have to make your money State to submit the following documents at the time of grow by investing it properly. ! payment of cash incentive: The state-run PKB offers a maximum loan of 01 lac BDT (USD 1,250) for re-migration of returnees to cover § Passport copy IMPORTANT TIPS ON INVESTING the cost of airfare. It also offers up to 10 lac BDT (USD § Appointment letter copy/no. provided by foreign ! Pay yourself first 12,500) for reintegration with only property documents employer/BMET (Bureau of Manpower, ! Know your investment goal and without collateral or mortgage. Employment and Training) approval copy/no. ! Diversify your investment; do not put your eggs in one ! Loan facility of Tk 700 crore for returning migrants to § Residence permit copy/no. basket use in business, investment or livelihood. § Copy of trade license in case of remittance ! Start early (the earlier you start investing, the better. Private sector i. Bureau of Manpower, Employment and Training (BMET) generated from business proceeds abroad The sooner you start, the less money you will need ii. Profile of migration, remittance and impact on economy by Dr. Md. Banks offer reintegration loans under its general loan Nurul Islam, Director, BMET. ! Beneficiaries of wage earners’ remittance also need to every year to achieve your investing goals. Your schemes. BRAC Bank offers reintegration loans under its iii. Profile of migration, remittance and impact on economy by Dr. Md. submit the above-mentioned documents to their bank earnings will increase over time, so don’t be afraid to Nurul Islam, Director, BMET. start investing) general loan scheme. iv. Bangladesh Bank, Research Department branches within five working days for claiming cash v. Probashi Kallyan Bank incentive. vi. Bangladesh Bank 10 11 ! For wage earners’ remittance above BDT 150,000, Civil society beneficiary need to claim the incentive. If the beneficiary and remitter are the same person and CSOs and microfinance organization offer migration residing abroad, then the beneficiary will communicate loans for returnees wishing to emigrate. directly over phone or e-mail to his/her bank branch in Bangladesh for claiming cash incentive. Nobody plans to fail, ! If the remitter is sending money to beneficiary in some just fail to plan Bangladesh (the beneficiary is other than remitter and the amount is more than BDT 150,000), the beneficiary in Bangladesh is required to claim incentive from his/her bank in Bangladesh. INVESTMENT CREATING SCOPES FOR INVESTMENT ! Correspondent bank/payee bank may ask beneficiary Saving is not enough; you have to make your money State to submit the following documents at the time of grow by investing it properly. ! payment of cash incentive: The state-run PKB offers a maximum loan of 01 lac BDT (USD 1,250) for re-migration of returnees to cover § Passport copy IMPORTANT TIPS ON INVESTING the cost of airfare. It also offers up to 10 lac BDT (USD § Appointment letter copy/no. provided by foreign ! Pay yourself first 12,500) for reintegration with only property documents employer/BMET (Bureau of Manpower, ! Know your investment goal and without collateral or mortgage. Employment and Training) approval copy/no. ! Diversify your investment; do not put your eggs in one ! Loan facility of Tk 700 crore for returning migrants to § Residence permit copy/no. basket use in business, investment or livelihood. § Copy of trade license in case of remittance ! Start early (the earlier you start investing, the better. Private sector i. Bureau of Manpower, Employment and Training (BMET) generated from business proceeds abroad The sooner you start, the less money you will need ii. Profile of migration, remittance and impact on economy by Dr. Md. Banks offer reintegration loans under its general loan Nurul Islam, Director, BMET. ! Beneficiaries of wage earners’ remittance also need to every year to achieve your investing goals. Your schemes. BRAC Bank offers reintegration loans under its iii. Profile of migration, remittance and impact on economy by Dr. Md. submit the above-mentioned documents to their bank earnings will increase over time, so don’t be afraid to Nurul Islam, Director, BMET. start investing) general loan scheme. iv. Bangladesh Bank, Research Department branches within five working days for claiming cash v. Probashi Kallyan Bank incentive. vi. Bangladesh Bank 10 11 If family concerns are not addressed; You have to make your money grow financial goals will not be achieved… by investing it properly.

Migrant Resource Centre-Dhaka Migrant Resource Centre-Cumilla District Employment and Manpower Office, Dhaka District Employment and Manpower Office, Cumilla Ground Floor, Probashi Kallyan Bhaban 25, Chandala House, Bagichagaon, Cumilla-3500 71-72 Old Elephant Road, Eskaton Garden Bangladesh Dhaka-1000, Bangladesh 01730666936 (Dhaka), 01713086330 (Cumilla) [email protected] www.mrc-bangladesh.org Migrant Resource Centre Bangladesh mrc_bangladesh mrc_bangladesh

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