The Bangladesh Bank has set a limit on the percentage of income that foreign employees can transfer to their foreign currency (FC) accounts so that authorised dealer banks can monitor the amount being sent abroad.
In a circular issued on Tuesday, the central bank said from now on, foreign nationals can transfer 75 percent of their monthly incomes to their FC accounts. The amount can be remitted in its entirety to the home countries of the foreigners.
Earlier, foreign employees were allowed to transfer 100 percent of their monthly incomes to FC accounts but could only remit up to 75 percent of that amount.
Authorised dealer banks said that it was difficult for them to monitor if foreign nationals were actually sending money within the limit or exceeding it, an official of the central bank told The Business Standard.
So, the Bangladesh Bank instructed the authorised dealer banks to allow foreign nationals to transfer a maximum of 75 percent of their monthly incomes to their FC accounts, the official added.
Authorised dealer banks may, out of the balances held in these accounts, allow debit or prepaid cards to be used for permissible transactions of FC account holders, including travel-related expenses, the circular reads.
Encashment of the money held in FC accounts shall be treated as inward remittances for bonafide local disbursements, including purchasing air tickets locally, as per the rules of foreign exchange transaction guidelines.