Authorised dealer banks can now issue remittance cards in their names, which will be used for paying foreign fees digitally for education, health and training.
In the existing system, these banks complete foreign transactions on behalf of clients through SWIFT messages. SWIFT is a global member-owned cooperative and the world’s leading provider of secure financial messaging services.
On the other hand, money is remitted to Bangladesh through exchange houses.
In a notice issued on Monday, the Bangladesh Bank introduced the facility to send remittance abroad through international cards. It said the authorised dealer banks would be able to make online transactions to pay for 11 purposes, including information and communication technology, membership fees, admission fees, healthcare fees, visa fees and training fees against remittance cards issued to clients.
However, the transactions cannot exceed the limits previously set by the central bank for foreign spending in those areas.
The banks will have to follow instructions in issuing cards and make transactions; they will have to take measures to prevent the misuse of remittance cards; transactions will be done only after the necessary documentation is complete. They must comply with the spot selling rate for exchanging foreign currencies.
Sk Matiur Rahman, head of the Treasury Division at Prime Bank, appreciated the Bangladesh Bank’s move and said it would ease the process to remit money abroad.
Parents will no longer suffer in paying fees for their children’s overseas education. They can directly make the payments online using remittance cards.