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Bangladesh Bank has consolidated the rules and regulations governing outward remittances under current-account transactions, excluding imports and transportation services, into a single comprehensive circular.
The Foreign Exchange Policy Department-1 of the central bank issued the circular on Wednesday, bringing together instructions issued at different times to facilitate foreign payments and remittances from Bangladesh.
According to Bangladesh Bank, the main objective of the move is to consolidate the applicable foreign-exchange regulations in one document. This will enable banks and other relevant parties to access the rules and instructions governing outward remittances from a single source.
The new circular incorporates the main circular issued on September 30 last year, along with subsequent circulars, circular letters and other instructions issued on the subject.
With the issuance of the consolidated circular, all previous instructions covered by the new circular will stand repealed. However, reporting-related requirements will remain unchanged.
The circular provides detailed provisions on various categories of outward remittances and the procedures banks must follow in processing such payments.
These include foreign travel, medical treatment abroad, overseas travel by government and semi-government officials, education, visa and immigration fees, overseas employment, and expenses related to professional training, seminars and other programmes.
It also covers remittances of profits and dividends abroad, payments for consultancy and training services, dues payable to foreign agents, opening branches abroad, and lease rentals for aircraft and ships.
Separate provisions have been included for payments related to software and information technology services, e-commerce and various transactions involving small and medium-sized enterprises (SMEs).
The circular also incorporates provisions concerning transactions through international cards, payments using card platforms and cross-border digital payments conducted under digital payment frameworks through banks.
Detailed instructions have also been provided for travel-related foreign-exchange transactions.
These cover the release and use of foreign currency for overseas travel, medical treatment, business trips and religious pilgrimages, including Hajj and Umrah, as well as the procedures for making payments under the relevant categories.
The central bank said the consolidated circular will remain effective for one year from September 30, 2026.
If any new instructions are issued during this period, they will have to be read in conjunction with the consolidated circular. In case of any ambiguity or inconsistency, the instructions contained in the original circular will prevail.
The latest move is part of Bangladesh Bank’s broader effort to consolidate foreign-exchange regulations and make them easier for authorised dealer banks and other stakeholders to follow. The central bank has taken similar steps in recent months to consolidate regulations governing export transactions and foreign-exchange-related loans, guarantees and external borrowings.
Bankers and businesspeople familiar with the regulations have welcomed the initiative, saying it should reduce the need to consult multiple circulars issued at different times.
They said having the rules on outward remittances in a single document would make it easier for banks and businesses to identify the applicable provisions, process legitimate foreign payments and ensure compliance with Bangladesh Bank’s requirements.