Central bank relaxes int'l credit card payment rules

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FE Report
The central bank has relaxed rules relating to payment through international credit cards to facilitate foreign exchange transactions, officials said.
Under the new rules, government officials, private sector officials, private foreign currency accounts holders and pilgrims will be allowed to use international credit cards for making their payments aboard.
Besides, international credit cardholders using mobile phone roaming service can pay bill to mobile phone operators in Bangladesh, they added.
The central bank took the move Tuesday to facilitate tourists, private sector entrepreneurs and professionals for making their payment using international credit card instead of cash.
"We have relaxed rules on payment through international credit card to ease foreign currency payment system," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
The central bank issued a circular in this connection on the day and asked the commercial banks to follow the new rules and regulations for issuing international credit card.
The banks may issue international credit card to an individual against the annual personal travel quota entitlement in line with the existing guidelines for foreign exchange transactions (GFET).
Under the existing rules, any Bangladeshi passport holder is entitled to use maximum US$3000 per year outside of the SAARC countries. But only US$1000 can use per year within the SAARC region including Myanmar.
International prepaid card may be issued to intending pilgrims for meeting expenses in Saudi Arabia only while performing Hajj as per entitlement each year, the BB said in its circular.
"The banks will have to establish effective control to ensure utilisation of foreign exchange issued for SRRAC countries, including Myanmar and other than the SAARC countries," another BB official said.
He also said the banks have to submit report on payment made through international credit card to the concerned department of the central bank on monthly basis.
Market operators said that the BB's latest move aimed to facilitate mainly tourists for meeting expenses, including hotel booking, using such credit card instead cash.
"The demand for international card is gradually increasing in Bangladesh," a senior official of a private commercial bank told the FE, adding that around 10,000 international cardholders are now in the country.