Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh

Masud Rana; Muntaha Islam

Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh

Abstract

This study explores the reasons behind the persistent use of informal remittance systems, particularly hundi, in Bangladesh. It aims to identify the key factors driving individuals to choose informal channels over legal, formal remittance services. The research employs a quantitative approach, surveying 310 respondents across Bangladesh to understand their experiences with informal and formal remittance systems. Data were analyzed using statistical methods, including correlation and factor analysis, to uncover the motivations for preferring informal systems like hundi. The study reveals that users prefer hundi due to its lower transaction fees, faster service, accessibility in rural areas, and minimal bureaucratic requirements. Cultural acceptance and trust in the reliability of informal systems also play a significant role, despite users’ awareness of legal implications. This research expands the understanding of remittance behaviors in developing economies by integrating cultural, economic, and legal dimensions of informal systems. Methodologically, it provides a robust framework for analyzing remittance practices through a combination of survey data and statistical analysis. Policymakers should focus on reducing fees and improving the accessibility of formal remittance channels while raising awareness of the legal risks associated with informal systems. Expanding rural banking infrastructure and simplifying formal remittance processes are key strategies to transition users towards legal channels.

Keywords

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Details

Primary Language

English

Subjects

Domestic Economy

Journal Section

Research Article

Authors

Masud Rana ^*
0009-0009-2983-095X
Bangladesh

Muntaha Islam This is me
0009-0004-7436-3362
Bangladesh

Publication Date

December 27, 2024

Submission Date

October 27, 2024

Acceptance Date

December 24, 2024

Published in Issue

Year 2024 Number: 100

IZ

https://izlik.org/JA98JY68ZB

Cite

RIS / Bibtex

APA

Rana, M., & Islam, M. (2024). Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh. Reforma, 100, 55-65. https://izlik.org/JA98JY68ZB

AMA

1.Rana M, Islam M. Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh. Reforma. 2024;(100):55-65. https://izlik.org/JA98JY68ZB

Chicago

Rana, Masud, and Muntaha Islam. 2024. “Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh”. Reforma, nos. 100: 55-65. https://izlik.org/JA98JY68ZB.

EndNote

Rana M, Islam M (December 1, 2024) Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh. Reforma 100 55–65.

IEEE

[1]M. Rana and M. Islam, “Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh”, Reforma, no. 100, pp. 55–65, Dec. 2024, [Online]. Available: https://izlik.org/JA98JY68ZB

ISNAD

Rana, Masud - Islam, Muntaha. “Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh”. Reforma. 100 (December 1, 2024): 55-65. https://izlik.org/JA98JY68ZB.

JAMA

1.Rana M, Islam M. Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh. Reforma. 2024;:55–65.

MLA

Rana, Masud, and Muntaha Islam. “Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh”. Reforma, no. 100, Dec. 2024, pp. 55-65, https://izlik.org/JA98JY68ZB.

Vancouver

1.Masud Rana, Muntaha Islam. Unveiling the Dynamics of Informal Remittances: An In-Depth Study of Hundi Practices in Bangladesh. Reforma [Internet]. 2024 Dec. 1;(100):55-6. Available from: https://izlik.org/JA98JY68ZB