Saturday, 16 October, 2021

ADs can endorse dollar for multiple years

  • Staff Correspondent
  • 24 September, 2021 12:00 AM
  • Print news

Bangladesh Bank has allowed the authorized dealer (AD) banks to endorse dollars for multiple years on relevant passports.

The central bank on Thursday issued a circular in this regard and sent it to the ADs of foreign exchange.

 Bangladesh Bank brings such flexibility in releasing foreign exchange for private travels along with some cautionary directives.

According to the circular, the ADs may endorse or set travel entitlements on relevant passports to the Bangladeshi nationals in international cards for multiple years.

It, however, said there are some instructions for compliance- yearly use would not exceed the limit, unused quota would be brought forward to following years.

Bangladesh nationals going abroad for employment or immigration or study purpose would not be eligible to avail this facility, it said.

  “The multiple endorsement should be discontinued for such individuals. Supplementary cardholders may avail this facility against their own travel entitlement with endorsement on own passports,” the notification said.

The time limit for annual travel quota will be counted from January 01 to December 31.

 “If the travel involves subsequent year, travel entitlement will be counted for the particular year to which the transaction date relates,” the circular said.

In that case, the post facto endorsement will be required for the subsequent year unless multiple years’ endorsement facility has been used, particularly under international cards,” it stated.

The ADs have to report to Bangladesh Bank for such cases based on date of transactions.

In case of exceeding the quota limit endorsed through international cards, while on travel abroad, for unavoidable but grounds acceptable to ADs, the excess amounts may be adjusted in the following ways, the BB notification said.

The individual traveling abroad can debit to RFCD accounts (Resident Foreign Currency  Deposit). The excess amount should not exceed $500 or equivalent, which will be adjusted against travel quota of the following year, without prior approval from Bangladesh Bank in case of unable to debit RFCD account.

The BB asked ADs to arrange adequate monitoring and supervision on overall process with the support of technology to implement the directive.