Regulatory Alerts2020-09-20
Added · Updated
FEPD Circular Letter No. 32: Use of international cards (ICs) for online payments - clarification
The document clarifies that online payments from Bangladesh using international cards are admissible for specific transactions, including bonafide payments by BASIS member IT/software firms, membership fees, IT expenses, visa processing fees, hotel bookings, and mobile phone roaming bills, subject to admissible annual entitlements or balances of linked foreign currency accounts. A single transaction limit of USD 300 or its equivalent remains applicable for these transactions as well as for the general purchase of legitimate goods and services from abroad. Authorized Dealers in Bangladesh are required to ensure that the required amounts for these specified transactions fall within the USD 300 threshold.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka www.bb.org.bd FE Circular Letter No. 32 Date: 20 September, 2020 Head offices/principal offices of all Authorized Dealers in Bangladesh Dear Sirs, Use of international cards (ICs) for online payments - clarification Please refer to paragraph 17, chapter 19 of the Guidelines for Foreign Exchange Transactions-2018, vol-1 (GFET) and its subsequent circulars including Circular Letter No. 5 of January 29, 2020 in terms of which Authorized Dealers (ADs) can allow their cardholder customers to use ICs for online payment not exceeding USD 300 or its equivalent at a single transaction against purchase of goods and services (such as downloadable application software, e-books, etc.), magazine/newspaper subscription fees and other legitimate goods and services (except prohibited ones) from reputed and reliable sources abroad. 02. This is to clarify that online payment from Bangladesh can be executed for actual payment against the under stated transactions, subject to admissible annual entitlements or balances of foreign currency accounts linked to the concerned cards: (a) Bonafide payments by BASIS member IT/software firms (cf. paragraph 11, chapter 19 of GFET) (b) Membership fees, etc. (cf. paragraph 12, chapter 19 of GFET) (c) IT expenses (cf. paragraph 13, chapter 19 of GFET and FE Circular No. 33 of September 09, 2019) (d) Visa processing fees (cf. paragraph 14, chapter 19 of GFET) (e) Hotel booking (cf. paragraph 16, chapter 19 of GFET) (f) Mobile phone roaming bills (cf. paragraph 18, chapter 19 of GFET) 03. In addition to above, online payment of USD 300 at a single transaction is admissible for legitimate purchase from Bangladesh as mentioned in first paragraph. This entitlement of USD 300 can also be used for transactions as per paragraph 2 above provided that the required amount is within USD 300. Please bring the above clarifications to the notice of your concerned constituents. Yours faithfully, (Mohammad Khurshid Wahab) General Manager Phone: 9530123
More like this from BB
BB published 33 documents in the last 30 days. We email you each new one the day it's published.