The Bangladesh Bank has simplified the process of bringing in foreign currency earned from services rendered to overseas institutions.
On Wednesday, the regulator issued a circular allowing authorised dealer (AD) banks to receive electronic declaration (known as Form-C) from customers, preferably through designated apps through the internet banking network, for inward remittances, excluding wage remittances.
As per previous regulations, declaration is not required for wage remittances sent by Bangladeshis working abroad.
AD banks shall execute transactions after being satisfied with the electronic information received electronically. Later AD banks shall take a print out of the declaration and get it signed by beneficiaries within 30 days for preservation, the circular added.
Such banks receiving funds from beneficiaries maintaining accounts with other banks shall transfer funds to respective banks through “FC Clearing BD-RTGS System.”
Industry insiders have termed the initiative as “a milestone decision” for the country’s banking system.
As a part of digitization of cross border banking transactions, this will reduce processing time to encash inward remittances particularly on account of service exports, they said.