Earlier, Bangladeshis had to spend foreign currency abroad using international credit cards
From now on Bangladeshis – while travelling to any foreign country – will be able to settle transactions electronically, using international debit cards.
Earlier, travellers had to spend foreign currency abroad using international credit cards.
"It has been decided that authorised dealers [ADs] may issue international debit cards [IDCs] in favour of eligible persons against their annual travel entitlements," the Bangladesh Bank said in a circular on Tuesday.
The circular said international debit cards should be issued within the annual travel entitlement with an endorsement on passports, among others.
Authorised dealer banks shall have suitable arrangements with the local currency accounts to which IDCs are linked so as to ensure that amount in foreign exchange cannot be expended in excess of endorsements within the annual travel entitlement, it also said.
The central bank circular read that the local currency accounts to which IDCs are linked should have sufficient funds to support the expenses to be met from the cards.
Alternatively, ADs should retain the endorsed amount equivalent in taka, from local currency accounts in the margin accounts, to be maintained in the names of customers for smooth adjustment of the expenses incurred through IDCs, added the circular.
Now, dealers are authorised to issue international credit cards and prepaid cards in favour of eligible persons against their annual travel entitlements, as per Foreign Exchange Transactions Guidelines-2018.