Global Payments Arrive: Bangladesh Bank Simplifies Digital Transfers
Millions of Bangladeshis may soon access easier international money transfers. Bangladesh Bank has introduced a new framework. This plan aims to bring major global digital payment services like PayPal and Payoneer to the country.
The central bank issued new guidelines today, Wednesday. This “bank-intermediary framework” will make international trade for services easier. It will also help more people use digital financial services. This will further modernize Bangladesh’s payment system.
Under this new system, local banks can partner with foreign payment companies. These include digital platforms and online payment gateway providers. Together, they can offer international digital payment services to customers.
Banks will help customers open special online accounts. These are called Digital Value Accounts, or DVAs. Individual DVAs will not work independently. Each DVA must link to a main settlement account held under the bank. This ensures all transactions are secure and transparent.
Bangladesh Bank has instructed banks to monitor transactions in real-time. They must also keep a parallel ledger for clarity. Any unused funds must stay under the direct control of the bank. These funds will be refunded or adjusted according to central bank rules.
The new system allows individuals, businesses, and freelancers to make foreign currency transactions. Digital wallets can be used for foreign exchange under personal, medical, or official travel quotas. Small online purchases or fee payments up to US$300 per transaction are also allowed.
Other uses include paying membership fees or IT-related expenses. Visa processing fees and online hotel bookings also fall under this facility. These services will be available through Export Retention Quota (ERQ) and Resident Foreign Currency Deposit (RFCD) accounts.
For institutions with ERQ accounts, up to three senior officials can use DVAs. This is for business expenses. Freelancers and e-commerce businesses will also find it simpler to bring their foreign earnings into Bangladesh. Foreign nationals and tourists can use this facility to pay at local shops.
Before offering these services, banks must get prior approval. They need to submit detailed information on their technology and security. Banks must also follow anti-money laundering rules. They must meet customer due diligence requirements. Regular reports on all transactions must be sent to Bangladesh Bank.
