In a major relief for Bangladeshi students pursuing higher studies abroad, Bangladesh Bank has permitted Authorised Dealer (AD) banks to issue and allow the use of international cards – debit, credit, or prepaid – to pay overseas tuition and education-related fees directly to foreign institutions.
Crucially, transactions executed under this new facility will be treated separately and will not affect or count against the student's annual personal travel quota or other standard foreign exchange privileges, the central bank announced in a circular on Monday.
The directive aims to ease legitimate cross-border transactions as many foreign educational institutions and enrolment platforms increasingly mandate digital fee payments via international cards.
Under the guidelines, the facility applies to students enrolled in regular courses abroad, including undergraduate, postgraduate, language courses (whether prerequisite to a bachelor's degree or not), and professional diploma or certificate programmes at recognised institutions.
Key terms and conditions outlined in the circular:
Card Issuance: International cards may be issued as debit, prepaid, or credit cards. In the case of credit cards, credit limits will adhere to issuing banks' internal credit policies and central bank limits.
Cardholders: Cards can be issued either in the name of the student or the person bearing the student’s educational expenses.
Validity and Allocation: AD banks can load the required foreign exchange onto the card following regulatory due diligence (KYC and AML/CFT compliance). The loaded amount will remain valid for a period determined by the bank.
Usage Controls: Cards must be used exclusively for education-related payments, and banks must establish strict controls to ensure payments are limited to loaded amounts and sent only to appropriate educational beneficiaries.
Banks have also been instructed to maintain proper transaction records, monitor utilisation, and report all transactions to Bangladesh Bank through the Online Foreign Exchange Transaction Reporting System (TM Module) using proper purpose codes.
All other general instructions regarding foreign exchange release for overseas education remain unchanged.