Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Wednesday relaxed the foreign exchange regulations relating to release of outward remittances for few current account transactions to mitigate public sufferings, officials said.
Under the new regulations, the commercial banks will be empowered to release funds for study, registration fee for training, seminar and workshop aboard, legal expenses of banks and earnings of local agent of foreign railway company without prior approval of the central bank.
“We’ve relaxed the foreign exchange regulations aiming to stop public harassment for sending such funds to the parties concerned,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
The central bank issued a circular in this connection Wednesday and asked the commercial banks to follow the measures on such current account transactions.
In case of change of institution, subject and study of new higher course, the commercial banks will be allowed to release outward remittances after scrutiny of documents to the parties concerned, the central bank said in a circular issued on the day. .
The BB official also said the foreign exchange dealer banks will be allowed to release foreign exchange on account of registration or participation fee for attending training, seminar and workshop abroad to the organizing institution abroad on behalf of employees, officials working in company, firm and institution operating in Bangladesh without prior approval of the central bank.
The dealer banks were earlier allowed to release such funds only to the government officials, employees of banks and financial institutions without prior approval of the BB for attending training, seminar and workshop abroad.
“From now, foreign exchange dealer banks may release foreign exchange on behalf of the BB approved agent of foreign railway company without prior permission from the central bank,” the BB said in the circular.
In this case, the agent operating under the permission from the BB should submit to the dealer banks monthly statements for the purpose of remittance of surplus earnings to the foreign railway company (principal), according to the circular.
The central bank said permission from the BB will be required at first time to remit legal fees abroad for a particular case and no permission will be necessary form now for onward remittance for the same case.
“In the context of first time application, banks shall apply the BB with legal opinion from expert lawyer of the banks regarding the chances of success of the cases and the necessity to contest the cases and approval from board of directors of banks together with relevant documents,” it noted.
BBN/SS/SI/AD-06August09-12:20 am (BST)