United News of Bangladesh

The Bangladesh Bank has simplified the process to send money for students studying in language education courses abroad. The Foreign Exchange Policy Department of the central bank issued a directive with immediate effect on Thursday. The students enrolling in language programmes will no longer require prior approval from the Bangladesh Bank to remit foreign education fees. According to the Bangladesh Bank, students admitted to recognised foreign institutions for language courses can now directly send the necessary funds through authorised banks by presenting the required documents. Bangladesh Bank simplifies overseas payments for professional course fees Previously, this facility was limited to Bachelor's or higher degree programmes, but now language education has been brought under the same framework. Experts believe this decision will strengthen Bangladesh's position in the international labour market. Language proficiency offers easier access to jobs and higher education opportunities in countries like Japan, South Korea, and some European nations. This new policy is expected to reduce reliance on recruiting agencies and open up direct avenues for studying abroad.

Bangladesh Bank has raised the limit of funds to be sent abroad for medical treatment expenses from US$ $10,000 to $15,000. The foreign exchange policy department of the central,bank on Monday, through a circular confirmed this. The new directive allows individuals to send up to $15,000 for this purpose without prior approval from the central bank. Previously, banks were authorised to remit a maximum of $10,000 for medical expenses without special permission. This limit has now been raised by an additional $5,000. According to the Bangladesh Bank's notification, up to $15,000 in foreign currency can be released in the name of the hospital or through international cards. Within this limit, customers can also withdraw up to $5,000 in cash. Bangladesh Bank to release newly designed banknotes ahead of Eid Sources indicated that due to visa complexities with India, many individuals seeking advanced medical treatment are now opting for alternative destinations such as Thailand, China, Singapore, the United Kingdom, and the United States. The cost of travel and treatment expenditures in these countries tends to be higher, considering that the central bank has relaxed dollar spending. The central bank clarified that for medical expenses exceeding $15,000, the remitting bank will need to seek special authorisation from the Bangladesh Bank. Bangladesh Bank stated that simplifying the process for legitimate medical expense transfers aims to discourage individuals from resorting to illegal channels like hundi, which can negatively impact inward remittances. This move follows a decision earlier this month by the Bangladesh Bank to ease regulations for sending funds abroad for various purposes, including education. Bangladesh Bank urges best practices in LC payments Banks can now utilise international card platforms to facilitate payments for membership fees, IT-related expenses, overseas education costs, visa fees, foreign training registration fees, and medical expenses.

The Foreign Exchange Policy Department (FEPD) of Bangladesh Bank has issued three new directives concerning foreign currency exchanges for private travel entitlements through licensed money changers. The notification, signed by Monoar Uddin Ahmed, Director of FEPD, was issued on Tuesday, outlining updated regulations aimed at facilitating outbound travellers. Under the Guidelines for Foreign Exchange Transactions (GFET)-2018, Volume 1, licensed money changers have been authorised to sell foreign currency notes, coins, and travellers' cheques (TCs) to Bangladeshi nationals travelling abroad. This is in accordance with their annual private travel entitlement, subject to a maximum limit of 1,000 US dollars or its equivalent in cash. The limit has now been enhanced to 2,000 US dollars or its equivalent in cash, doubling the previous allowance Bangladesh Bank provides liquidity guarantee of Tk 6,585 crore to 7 banks For Hajj pilgrims, licensed money changers are to follow the government’s Hajj policy regarding the release of foreign currency. The notification also says all other related instructions would remain unchanged. This move is expected to ease financial transactions for outbound travellers and ensure better compliance with foreign exchange regulations.

Bangladesh Bank has introduced greater flexibility for banks in dispatching export documents to buyers. A circular issued by the Foreign Exchange Policy Department said that to accommodate customary practice in export trade, it has been decided that authorised dealers (ADs) of designated banks may allow exporters to dispatch export documents (excluding original transport document of title to cargo) directly to importers or their agents abroad through secured media, subject to observance of certain instructions. The instructions include underlying sales contracts/letters of credit provide for such direct dispatch of export documents while ADs shall be satisfied with the arrangement of realization of export proceeds within the statutory period. Read: BB asks Union Bank to explain Tk 19 crore missing from its Gulshan branch The ADs shall endorse original transport documents retained with them on receipt of payment against relevant export. This is to clarify that export documents may also be dispatched by exporters against full export payment realized in advance, it said. However, ADs shall obtain relevant export documents to adjust advance payment with related exports. Read: BB to launch Tk 3,000 crore agriculture loan refinance scheme In terms of FE Circular No. 17, dated April 23, 2019, exporters are required to report transport/shipping information immediately in Bangladesh Bank online reporting portal, and submit relevant documents within 14 days from the date of shipment, inter alia, the BB mentioned.

Bangladesh Bank has brought further flexibility in accessing foreign loans by foreign-owned companies operating in Bangladesh.

Bangladesh Bank has further simplified the process of outward remittance of foreign exchange - crucial to make payments for goods or services bought from overseas sellers - for industrial entrepreneurs to help expand their businesses.

Bangladesh Bank will allow foreign investors to deposit their dividend with the foreign currency (FC) accounts maintained with banks in the country with certain conditions.

Money changer (MC) firms can renew their licences without fulfilling their annual business target.