Market Digest

E-CAB to send $10,000 abroad annually: BB

Staff Correspondent

3 May, 2021 12:00 AM printer

Members of e-Commerce Association of Bangladesh (e-CAB) will be able to send $10,000 a year abroad to meet their logical expenses without approval of Bangladesh Bank (BB).

The central bank foreign exchange policy department on Sunday issued a notification in this regard stated that BB decided to facilitate annual transaction of $10,000 or its equivalent to a member firm of e-CAB for meeting their current expenses abroad through traditional banking channel or card channel.

From now the Authorised Dealers (ADs) of foreign exchange can issue refillable international credit or pre-paid card with $2000 to nominated official of concerned firm within the limit.

In this case, aggregate refills in cards and remittances by banking channel will not be exceeded total limit of $ 10, 000 in a calendar year.

As usual, ADs will comply with relevant instructions of GFET including deduction and payments of applicable taxes at sources, VAT and other levies, recommendation from e-CAB, reporting routine to Bangladesh Bank and so on.

“Transactions under the authorisation will be executed by a single AD bank branch nominated by concerned institutions or firm. For any intended change of AD branch, the relevant files will be transferred directly to the

concerned new AD branch on written request by eligible firms,” the directive said.

Regarding the announced policy, the concerned of Bangladesh Bank said that the foreign transaction system is being updated in a timely manner. The remittance facility will facilitate e-commerce business activities.

In the last five years there has been major rise in the popularity of e-Commerce. It would become a billion dollar industry in the next five years creating jobs for thousands of people.

The e-Commerce Association of Bangladesh (e-CAB) has been created to improve the e-Commerce sector of Bangladesh. There are currently around 500 websites and 2000 Facebook companies.

The e-Commerce is not an isolated sector but related to banking, mobile network, and online payment system.

In order to ensure the growth of the e-Commerce sector, e-CAB  focus on online shop and e-Service, e-Payment and transaction, e-Security, e-Commerce policy and guidelines, service delivery, e-Commerce awareness and training, Product quality improvement, and research.