People’s Bank steps up its role with new initiatives to boost forex inflows into the country
Backed up its extensive network in providing unparallel banking solutions to 14 million customer base, People's Bank has stepped its role in facilitating foreign exchange inflows into the country over this critical period.
As a result of the initiatives taken by the Bank, the People's Bank was able to increase its share in remittance inflows compared to the beginning of last year.
With Worker Remittance remains the largest foreign exchange earner for the country, the People's Bank as its latest initiative announced special draw, ‘People's Bank remittance Draw 2022' to incentivise remitters to use banking channels when they are transferring their hard-earned foreign currency earnings to their families and loved ones back in Sri Lanka.
People's Bank, Senior Deputy General Manager – Overseas Customer Services, Rohan Pathirage recently sat down with Daily Mirror to share some of key insights into recent developments in the country's foreign exchange market while touching on the Bank's foreign exchange-related products as well as remittance transfer solutions.
Following are the excerpts of the interview:
Q What are the initiatives taken by the bank for customers’ convenience in sending remittances to Sri Lanka?
As we have deployed over 1000 correspondents internationally, Sri Lankan Expatriates or any person can send money from any country in the world and their recipients can collect money at any of 739 business units across the country.
Moreover, we have Peoples Bank representatives stationed in major markets such as South Korea, Saudi Arabia, Kuwait, Qatar, and the United Arab Emirates, to service banking and non-banking needs of all of our loyal customers/sri Lankan expatriates. The Bank has established Tie Ups with major global Exchange houses including Gulf Region, Europe and South Korea.
With the convenience in mind, Peoples Bank has launched web based remittance payment services such as "peoples Web Remittance""peoples instant Remittance," that allows our customers to receive payments quickly to any account of PB as well as any other Bank 24 hours a day, seven days a week, 365 days a year.
We have also created a very convenient means of account opening facility for any Sri Lankan through Digital Platform and Whatsapp facility. Especially, our low back-end fees offered through global Money transfer agencies such as Western Union, Ria and Small world Spain etc make it easier and more appealing for anyone to transfer their remittances.
Further, we have come up with "pre-departure" and "special loan Scheme" for expats when they send remittances to PB, with a low interest rate and simple documentation requirements.
Q What are the benefits extended to remittance transfers into the country via People’s Bank?
As requested by the Central Bank, People's Bank extends additional Rs.10 per every US dollar or equivalent amount on any other foreign currency transfers by Sri Lankans working abroad. We also assure instant money transfers with the use of advanced technology.
The Central Bank also announced plans to introduce a migrant worker incentive package to encourage Sri Lankan expats to conduct money transfers through banking channels and other formal channels. The announced package includes pension/superannuation benefits, accident/life insurance benefits, banking facilities such as lowinterest loans for housing and/or self-employment upon return to Sri Lanka, and expanded duty-free privileges.
In addition to these general benefits, as an initiative taken by the People's Bank, we will be launching a Remittance Draw, offering attractive cash prizes for anyone who send money through People's Bank.
Q What are some of key foreign exchange-related deposit products offered by the Bank?
Our key forex related deposit products include Personal Foreign Currency Account (PFCA), Special Deposit Account (SDA), Senior Foreign National Fixed Deposit Account (in par with ‘Sri Lanka – My Dream Home's programme'). Resident Guest Foreign Currency Account, Business foreign currency Account and Inward Investment Account.
Can you elaborate on key Q advantages of these products offered by People’s Bank compared to your peers?
Our rates for foreign currency deposits are among the highest in the market and most importantly, As a leading State-owned Bank, we offer unparalleled security for your Foreign Currency Deposit.
In addition, our Foreign Currency account holders also receives an Insurance Cover which consists of accident cover up to Rs. One million and baggage cover up to Rs. 50,000. Further, our children's foreign currency account holders receive attractive gifts under our ‘Doodaru Ethera Isura' account. We have also taken measure to introduce special loan facilities to both emigrants and immigrants. In terms of convenience, we have facilitated ease of opening foreign currency deposit accounts from overseas via digital channels such as whatsapp, Viber, email and so on without ever having to physically visit any of our branches.
Q How has been the customer response to the Special Deposit Account (SDA) offered by the Bank?
There has been a very good response from the customers overseas as well as from the local customers. We have been able to raise a substantial amount of foreign currency in SDAS up to now.
What are the measures taken by Q People’s Bank to promote SDA?
We have taken multiple measures to actively promote SDAS globally. We have allocated a dedicated mobile number and staff for inquiries on SDA (24 x 7) and we have introduced a personal incentive scheme to encourage our bank staff to promote more and more SDAS.
We have also launched large scale advertising in mass media including social media (locally and internationally) to promote SDAS. In addition, our overseas representatives are also actively engaged in promoting SDAS.
Can you elaborate on Western Q Union (WU) promotions at your Bank?
We are in fact the leaders in the WU business in Sri Lanka, with a customer base of over 14 million and the largest branch network. We often conduct a variety of incentive promotions annually for our customers who visit any PB location to pick up a WU payment. Keeping up with this tradition, this year, we've included a new promotional giveaway item such as an attractive gift bag/pouch for each and every transaction performed until January 31, 2022. Moreover, People's bank has also introduced ‘Call and deposit service' and the Western Union where customers can get their money deposited in their accounts by a mere phone call (on 071 6356454 and 071 6356512) or a Whatsapp message without visiting a branch.
Can you share some details of Q the people’s bank remittance Draw 2022?
As we know, Remittances have been a significant source of foreign inflows to the country, averaging over $7 billion each year over the last five years.
However, these forex inflows are only recorded when its transferred via formal channels which includes banking channels such as ours. Therefore, the government and the Central Bank are currently working together to make sure that remittances realize their maximum potential in a way that benefits both the worker and the country.
In order to encourage forex inflows through formal channels, People's bank has formed the "Wasi Kotiyay" Remittance Draw 2022 to meet the country's needs. We are planning to launch this special promotion to encourage direct remittances to the Bank through People's e-remittances, People's Instant Remit, People's web Remit and any Accepted remittance channel to PB during 01.02.2022 to 31.12.2022.
Any Cash payment, PB account credit, or even any other bank personal accounts credits are eligible for the draw while winners with no PB Bank account are encouraged to open account with the Bank. The bank will offer cash and gold prizes for the winners which includes daily price of Rs 10,000, weekly price of 22K Gold sovereign, monthly cash price of Rs.one million and the grand cash prize of Rs. 10 million at the year end. The remitters will be eligible for multiple winning chances for every Rs.100, 000.
Q How is people’s bank supporting the country to increase for inflows under present challenging environment?
Challenges are mainly arising from the environment or new normal as a result of COVID 19 pandemic affecting all countries in the world. This affected adversely on Sri Lankan expatriates due to the loss of jobs and salary reductions. As a nation we also lost earnings from Tourism. To counter these effects, People's Bank has been providing financial support to the workers going abroad for employment. This is to increase the number of workers going abroad for employment and to increase the FX inflow to the country. People's bank also extended support to find new markets and thus expanding the markets for employment.
In line with the government policy, focus of People's bank right now is to encourage our Sri Lankan expatriates to send money through the banking channels not relying on informal way of sending money. In order to encourage this, we will be launching the massive gift schemes which I described earlier, to persuade expatriates sending money through People's Bank. Further, as a bank, the PB encourages incentive schemes for worker remittances, such as "every 1 Dollar with an additional LKR 10." We are also undertaking active awareness creation initiatives to encourage people to use legitimate channels to transfer money to Sri Lanka and receive this additional benefit. Our People's bank representatives who are stationed in main markets are doing an excellent job in this regard.
As a state bank, we have developed specific loan and financial facilities to help customers in the tourism and export sectors expand their businesses to increase the foreign exchange inflow to the country.
As the country is faced with a Q foreign exchange liquidity crisis, what’s People’s Bank message to stakeholders in the country’s foreign exchange market?
We at the People's Bank recognize the importance of foreign exchange given the fact that country's balance of payments continues to rely on remittances from workers as a viable source of funding. They aid in reducing the current account balance to a tolerable level and offsetting the trade deficit. In that sense, remittances have been the single most important source of foreign exchange inflows into the economy. The Central Bank of Sri Lanka (CBSL) together with the present Governor has taken number of proactive measures to increase the forex inflow to the country which includes establishment of a separate Unit, Remittance Facilitation Department at the CBSL to provide advice and support to the banking sector, offering Rs. 10 per each USD and concessions given to general public to deposit foreign currency held in hand or converting them into rupees and so on. In addition, the Government is also taking measures to create an environment conducive for revival of tourism, the other major foreign exchange earner for the country.
We already see the benefits of government‘s proactive measures since there is a notable increase of new arrivals of tourists to the country. There is an increase in the departures for foreign employment which I believe, will have positive impact on the forex inflows to the country.
Overall, we are optimistic that above measures initiated by the People's bank, CBSL and the Government will increase the inflow of Foreign Exchange to the country.