BB eases rules to help boost software exports

The central bank has relaxed regulations in support of the ICT (information and communication technology) sector helping it achieve the target of US$5.0 billion software exports by 2021.
Now, banks are allowed to remit from $25,000 to $30,000 on behalf of IT or software firms in a calendar year, the Bangladesh Bank (BB) said in a notification issued on Sunday.
"Within the limit of $30,000, international cards may be issuable for $6,000 instead of $2,500, which may be refilled subject to the availability of the limit," said the central bank notification.
The facility is not linked to the Exporters' Retention Quota (ERQ) account and is remittable through wire transfer and/or international card within the limit, a BB senior official explained.
"We've enhanced the remittable limit for the IT/software firms, which are member of the Bangladesh Association of Software and Information Services (BASIS) to help meet their genuine expenses in a calendar year," the central banker said.
He also said it would especially help new businesses in the sector.
Besides, the central bank has increased the limit of ERQ to 70 per cent from 60 per cent earlier to facilitate exports of ICT services.
"To promote exports of ICT services, it has now been decided that ICT-related service exporters may retain 70 per cent of their repatriated exports receipts in ERQ accounts," the BB said in another notification on the same day.
On the other hand, the banks are now allowed  to  issue  virtual  cards  for $300  in  a  calendar  year  to  individual  developers/freelancers to meet their real expenses.
"This is to clarify that virtual card may be debit-card, credit-card or prepaid card," the BB said in a separate circular on the day.
The central bank, however, simplified declaration on 'Form-C' for inward remittance for the purpose of ICT-related services to assess the actual exports earnings from the ICT sector.
"We've advised the banks to  extend  all-out  cooperation  to  the exporters  so  that  inward  remittance  can be encashed/credited to the relevant accounts within reasonable time," another BB official explained.
Mustafa Jabbar, president of the BASIS, welcomed the BB's latest moves, saying that it will help achieve software shipment target of $5.0 billion by 2021.
The government and the BASIS had earlier set the export earnings target considering overall business performance of the ICT sector.
"We'll be able to cross the target if the government continues its support," the BASIS chief noted.
The BASIS is the national trade body for Software and IT Enabled Service industry of Bangladesh.
Established in 1997, the association is dedicated to developing a vibrant software and IT service industry in the country.
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