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Bangladesh Bank further simplifies international transactions

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Bangladesh Bank further simplifies international transactions
Bangladesh Bank has issued a new policy to make international financial transactions easier, faster, and more modern. Under this, banks in the country can form partnerships with foreign digital payment service providers. As a result, Bangladeshi customers will be able to use international digital wallets through banks to make online payments abroad, travel expenses, and pay for various international services.

This information was disclosed in a notification signed by Harun Or Rashid, Director of the Foreign Exchange Policy Department-1 of Bangladesh Bank, on Wednesday (July 29).

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The notification stated that this policy has been introduced with the aim of modernizing the international digital payment system, facilitating global trade in services, and increasing digital financial inclusion.

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According to the new policy, the authorized dealer (AD) banks of the country can enter into agreements with foreign digital payment service providers, online payment gateways, and other legitimate international payment platforms. This will pave the way for launching digital value accounts (DVA) or international digital wallets for customers.

Additionally, for foreign travel, the facility to transfer foreign currency from the travel quota to the digital wallet will be provided. This facility will be applicable for personal, medical, and official trips. This will reduce the need to carry foreign currency cash abroad and make it easier to pay various expenses digitally.

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Through this digital wallet, hotel bookings, visa processing fees, membership fees for various international organizations, software and IT service bills, and other approved online payments can be made. As per existing regulations, the opportunity for online payments up to a maximum of US$300 per transaction will remain in place.

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Important facilities have also been kept in the new policy for exporters, freelancers, and e-commerce entrepreneurs. They can receive export proceeds from abroad legally. Additionally, funds from the Export Retention Quota (ERQ) account can be transferred to the digital wallet to pay international business expenses. This is expected to further boost international trade and digital service exports.

However, Bangladesh Bank has clarified that this is not an announcement of launching any specific foreign payment service—such as PayPal. Rather, a policy and regulatory framework has been created to connect Bangladeshi banks with international digital payment service providers. The concerned banks will gradually launch this service after obtaining necessary approvals.

To ensure customer security, the circular stated that all digital wallets will be operated under the control of the concerned bank, and each transaction will be monitored in real-time or near real-time. At the same time, all rules related to foreign exchange law, anti-money laundering (AML), combating the financing of terrorism (CFT), and know your customer (KYC) must be strictly followed.

According to those concerned in the banking sector, the demand for international online transactions in the country is growing rapidly. If the new policy is implemented, international transactions will become easier, faster, and safer for travelers, students, freelancers, IT entrepreneurs, exporters, and e-commerce businessmen. At the same time, with the increase of foreign transactions through legitimate banking channels, the country's digital economy will also be further strengthened.

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