Channels of Foreign Remittances and their Relative Efficiency in Sylhet Region of Bangladesh

The study examines the different channels of receiving foreign remittances and measures their relative efficiency in selected areas of Sylhet region in Bangladesh. The study was carried out based on the primary data collected from eight villages of Sylhet and Moulvibazar districts under Sylhet division. The sample size was 104 considering 52 remittance receiving households from each district by applying random sampling technique. Descriptive statistics and econometric technique were used to analyze the collected data. The study found that about 40% households received foreign remittances through the money transfer agencies, about 35% directly through the bank account and about 19% households received foreign remittances through the mobile banking system. Western Union was the most common channel among money transfer agencies whereas bKash was the mostly used mode among mobile banking system. Hundi still exists but the households were reluctant to disclose the information. The study concluded that money transfer agencies are the most efficient channel of receiving foreign remittances and mobile banking as a channel of receiving foreign remittances is now getting popularity among the households for its easy, convenient and fastest transaction.