Thursday, 28 September, 2023

PSPs can repatriate remittance

  • Staff Correspondent
  • 20th September, 2023 12:26:20 AM
  • Print news

Bangladesh Bank has allowed payment service providers to repatriate wage earners’ remittance in association with internationally recognised online payment gateway service providers (OPGSP).

Regarding the development, Foreign Exchange Policy Department (FEPD) of the central bank issued a circular on Tuesday.

“To bring wider flexibility, licensed PSPs (Payment Service Providers) will be also allowed to repatriate wage earners’ remittance in association with OPGSPs, banks, digital wallets, card schemes and aggregators abroad (hereinafter referred to as approved/licensed foreign payment service providers, foreign PSPs),” reads the circular signed by FEPD Director Sarwar Hossain.

A payment service provider refers to a third-party company which provides payment services to businesses that accept online payment methods.

In this context, PSPs shall have standing arrangements with foreign PSPs to receive foreign currency in their account and equivalent Taka value will be credited to the wage earners’ PSPs accounts.

Subsequently foreign PSPs shall provide credit to the designated AD’s nostro account. After receiving amount in Taka, wage earners’ can use the PSPs account abroad to do all transactions in Taka.

PSPs desirous for providing repatriation services shall apply to foreign exchange policy department at Bangladesh Bank head office within December 31, 2023 with details of proposed arrangements in accordance with framework outlined above or similar conducive procedures.