4.6 Foreign Remittance Section:

4.6 Foreign Remittance Section:

On March 24, 1994 Bangladesh Taka was declared convertible for Current account International Transaction. As a prelude to this wide-ranging reforms were made in the country’s foreign exchange regime to lay the ground for a market friendly environment to induce investment, growth and productivity. Following liberalization under convertibility, most remittances are now approved by the Authorized Dealers themselves on behalf of the Central Bank. Only a few remittances of special nature require Bangladesh Bank’s prior approval.

Foreign remittance means remittance of foreign currencies from one place/persons to another place/person. In broad sense, foreign remittance includes all sale and purchase of foreign currencies on account of Import, Export, Travel and other purposes. However, specifically foreign remittance means sale & purchase of foreign currencies for the purposes other than export and import. As such, this chapter will not cover purchase & sale of foreign currencies on account of Import & Export of goods.

All foreign remittance transactions are grouped into two broad categories- Outward remittance & Inward remittance.

4.6.1 Outward Remittance:

The term “Outward remittances” include not only remittance i.e. sale of foreign currency by TT. MT, Drafts, Traveler’s cheques but also includes payment against imports into Bangladesh & Local currency credited to Non-resident Taka Accounts of Foreign Banks or Convertible Taka Account. Two forms are used for Outward Remittance of foreign Currency such as: - IMP Form : All outward remittance on account of Imports is done by form IMP.

T.M. Form : For all other outward remittances form T.M. is used.

A. Private Remittance:

1. Family remittance facility: a) Foreign Nationals working in Bangladesh with approval of the Government may remit through an Authorized Dealer 10% of Salary and 100% of leave salary as also actual savings and admissible person benefits. No prior approval of Bank is necessary for such remittance.

b) Remittance of moderate amounts of foreign exchange for maintenance abroad of family members (spouse, children, parents) of Bangladesh Nationals are allowed by Bangladesh. Bank on written request supported by certificate from the Bangladesh Mission in the concerned country.

2. Remittance of Membership fees/registration fees etc.

Authorized Dealer may remit without prior approval of Bangladesh Bank, membership fees of foreign professional and scientific institutions and fees for application registration, admission, examination (TOEFL, SAT etc.) in connection with admission into foreign educational institutions on the basis of written application supported by demand notice/letter of the concerned institution.

1. Education:

Prior permission of Bangladesh Bank is not required for releasing foreign exchange in favor/on behalf of Bangladesh students studying abroad or willing to proceeds abroad for studies. Authorized Dealers shall allow exchange facilities for this purpose according to the following drill:

I. Application duly filled in by the student as per prescribed format of Bangladesh Bank. II. Original and photocopy of admission letter issued by the concerned institution in favor of the student. III. Original and photocopy of estimate relating to annual tuition fee, board and lodging incidental expenses etc. issued by the concerned institutions. IV. Attested copies of educational certificates of the applicant and V. Valid passport.

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