Bangladesh Bank has relaxed foreign exchange rules allowing banks to remit bandwidth services-related payments abroad without prior approval from the central bank.
The authorised dealer (AD) banks may remit payments against bandwidth services imported by the business entities incorporated in Bangladesh subject to observance of some instructions, according to a circular issued on Wednesday.
These instructions include licences from competent authorities, agreements with relevant parties abroad, invoices, settlement of taxes, audited statements in support of the payments, etc.
The banks will have to maintain separate files for each remitter-customer for verification by the BB inspection team, observe routine reports to the central bank and comply with 'AML/CFT' standards.
"It will help ease the payments processes related to bandwidth services," a senior official at the BB told the FE.
In another notification, the central bank allows banks to issue performance bonds or guarantees in favour of overseas buyers or contractors against letters of credit, purchases and sales contracts, work orders, advance payments, etc. on behalf of resident exporters or sub-contractors.
Earlier, the banks had to obtain permission to issue such bonds or guarantees.
This will ease business transactions and help promote exports, and inward remittances against local delivery on behalf of foreign contractors, according to a senior official of the central bank.
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