The central bank has issued a guideline, allowing banks to issue international debit cards (IDCs) in favour of eligible persons against their annual travel entitlements.
According to the guideline provisions, IDCs will be issued within annual travel entitlements with endorsement on passports, according to a notification, issued by the Bangladesh Bank (BB) on Tuesday.
"It's simply a banking service, not a loan product," a BB official told the FE while replying to a query.
The banks will be able to provide the service through issuing IDCs without giving any credit facility, the central banker explained.
The authorised dealer (AD) banks will have suitable arrangement in the local currency accounts, to which IDCs are linked, to ensure that amount in foreign exchange cannot be expensed in excess of endorsement within the annual travel entitlement, according to the guideline.
The local currency accounts, to which IDCs are linked, will have sufficient fund to support the expenses to be met from the cards.
Similarly, the ADs should retain endorsed amount equivalent in Taka from local currency accounts in the margin accounts, to be maintained in the names of customers for smooth adjustment of the expenses incurred through IDCs, the guideline added.
"The ADs will satisfy themselves that IDCs under this authorisation and prevailing international credit/pre-paid card (ICC/IPC) will be mutually exclusive," it noted.
Currently, the banks are allowed only to issue ICC/IPC against the annual personal travel quota entitlements of the prospective cardholders in line with the existing Guidelines for Foreign Exchange Transactions.
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