Hundi is illegal in Bangladesh and works outside the conventional banking system to transfer money. Though informal, the hundi business is well-organised. It is used as bills of exchange in trade transactions, credit instruments for borrowing money, and remittance instruments for transferring money from one place to another.
Bangladesh's banking sector now requires comprehensive reforms for the financial sector to become strong enough to augment a transition to an upper middle-income country by 2031, said Edimon Ginting, country director of Asian Development Bank (ADB), yesterday.