BB allows receiving remittances through payment gateways
The central bank issued a circular in this regard on Monday to simplify the repatriation of inward remittances against service export
The Bangladesh Bank (BB) has allowed receiving inward remittances through online payment gateway service providers.
The central bank issued a circular in this regard on Monday to simplify the repatriation of inward remittances against service export.
According to the circular, from now on service providers can maintain notional accounts with only those Online Payment Gateway Service Providers which have arrangements with authorised dealer (AD) banks in Bangladesh.
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A BB official said the decision was made to widen the scope of repatriation of income against service exports, especially exports from the IT sector.
Many IT experts have said the revised circular will facilitate freelancers to bring income easily and accelerate IT exports.
The circular also said that AD banks can facilitate repatriation of service income deposited in their "nostro accounts" by international market places or platforms, including eligible payment operators.
In this context, the banks will obtain detailed information from their service provider customers regarding maintenance of merchant accounts with international marketplaces, and the notional accounts with eligible payment service operators abroad.
The circular instructed the relevant banks to credit the respective bank accounts of their customers on receipt of deposits in their "nostro accounts". Funds can be credited in local currency through digital wallets maintained with mobile financial service providers.
The Exporters' Retention Quota (ERQ) accounts of customers can also be credited up to the permissible limit, the circular added.
The circular said that regulations on deductions of applicable taxes and payment thereof need to be complied with.
Service income is to be repatriated in convertible currencies within a statutory period of four months, the circular stated.
It further said that service providers can only operate merchant accounts for store of value or notional accounts for the repatriation of income.
An official of the central bank said in 2011 BB had allowed banks concerned to make arrangements with the payment gateway service providers to repatriate small value service export payments.
More simplification has been brought through this circular, he added.
