Market Digest

BB allows outward remittances thru int’l card channel

Staff Correspondent

1 June, 2021 12:00 AM printer

The Bangladesh Bank has allowed authorized dealers (AD) or banks to remit outward payment through international remittance cards (IRCs).

The central bank on Monday issued a circular in this regard. This will allow ADs to facilitate permissible transactions for different purposes including IT expenses, academic fees and fees for international training, seminar or workshops using international remittance cards.

Banks can issue international cards with identification as International Remittance Cards (IRCs) in their own names to be used by designated officials for permissible online payments, the BB directive said.

The ADs has to be satisfied regarding the safety to use IRCs on the internet and have proper safeguard arrangements against misuse of the IRC. The central bank also asked the ADs to follow the Guidelines for Foreign Exchange Transactions-2018 (GFET) and its subsequent circulars regarding the use of international cards as payment channel directly by international cardholders.

Besides, the ADs have to ensure that transaction requests from individual customers having proper documentation including TM forms. While executing remittance through IRCs, ADs have to apply the spot selling rate (T.T. Clean) as the exchange rate, applicable for service payments.

Earlier in September 2020, the BB issued a circular allowing ticket purchase by using online card payment facilities.