Dhaka, Bangladesh (BBN)– Country’s commercial banks are now allowed to issue ‘Freelancer Card’ having dual-currency units with features of being prepaid from abroad.
On receipt of the payment, up to eligible portion of the Exporters’ Retention Quota (ERQ) might be credited at the options of beneficiaries in foreign currency unit of the card while the remainder mandatorily in local currency unit after conversion at prevailing exchange rate, according to a circular issued by the Bangladesh Bank (BB), the country’s central bank, on Tuesday.
The balance held in foreign currency unit of the card as ERQ is usable for payment, through usual banking channel, on international current account transactions for bona fide business expenses including legitimate expenses for personal purposes, it added.
According to the notification, outward remittances from the foreign currency balance are subject to fulfillment of taxes payment obligations, if any.
Inward receipts exceeding US$ 10,000 or equivalent are subject to declaration on Form-C (ICT).
The banks will have to report the transactions to the central bank in relevant statement/schedule and online reporting system, mentioning appropriate code relevant to ICT/computer services.
The Authorised Dealers (ADs) in Bangladesh are allowed to repatriate inward remittances against small value service exports in non-physical form, including ICT-related services, through online payment gateway service providers.
“To widen the scope for repatriation of ICT (information and communication technology) related payments, it has been decided that ADs may provide facilities to credit inward remittances received in international card number/account against the services provided by individual developers/freelancers,” it noted.
Talking to BBN, a BB senior official said it will help increase the earnings from software exports by the end of this fiscal year.
He also said the central bank had earlier relaxed the regulations in support of the ICT sector to help it achieve the software export target of US$5.0 billion by 2021.
Now, the banks are allowed to remit from $25,000 to $30,000 on behalf of the IT or software firms in a calendar year, he explained.