BB eases forex rules for travel

The Bangladesh Bank has simplified regulations to release foreign exchange for travel purposes by allowing authorised dealer banks to endorse travel entitlements for multiple years up to the validity of passports in international cards.

Previously, authorised dealer (AD) banks were allowed to endorse travel entitlements for one year. 

In a notice on Thursday, the BB said AD banks need to maintain specific conditions in this context. The conditions include that yearly use will not exceed the limit of $12,000 and the unused quota will not be brought forward to following years. 

The BB restricted using multiple years travel entitlement facility for individuals going abroad for employment, immigration or study purpose.

The facility will be available for individuals holding supplementary cards against their travel entitlements.

The BB notice said the annual travel quota’s time limit would be counted from January 1 to December 31. If the travel involves a subsequent year, the travel entitlement will be counted for the particular year. 

In that case, post facto endorsement will be required for the subsequent year unless multiple years’ endorsement facility has not been used. 

“Cardholders can use excess amount exceeding travel quota for unavoidable but bonafide grounds. The excess amounts can be adjusted by debit to RFCD (resident foreign

currency deposit) accounts of concerned travellers,” the BB notice said. Up to $500 or equivalent can be adjusted against a travel quota of the following year. 

A central bank official said that Bangladesh Bank has continuously been updating regulations to facilitate transactions. The new rules will support travellers to be flexible in the use of travel entitlements.