Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has enhanced the limit of outward remittances on account of IT expenses through digital wallet to US$500 from $300 earlier to facilitate freelancers, officials said.
“We’ve increased the limit of outward remittances on account of IT expenses to facilitate IT freelancers or developers through meeting their bonafide needs,” a senior official of the Bangladesh Bank (BB) explained the main objective of the measure.
He also said it will help increasing earnings from service exports.
The central bank issued a notification in this connection on Monday and asked all foreign exchange authorised dealer banks, officially known as ADs, to follow the latest instruction relating to remit outward remittances on account of IT expenses through digital wallet properly.
The central banker also said the ADs are allowed to remit IT expenses within permissible limit using both virtual cards and Online Payment Gateway Service Providers (OPGSPs) system.
Under the latest regulations, the ADs may release IT expenses within permissible limit on behalf of individual developers/freelancers through their notional accounts (digital wallet) maintained with the OPGSPs such as –Xoom, a Paypal Service, Payza and Payoneer – to bring wider scope for cross border transactions by alternative channel.
In this context, the ADs will have to comply with some instructions including usual formalities required for outward remittances need to be observed including usual reporting, deduction of applicable taxes and payment thereof.
The ADs will arrange required amount in their NOSTRO accounts for settlement of payment through notional accounts of OPGSPs on post-funding basis.
For execution of online instructions from individual developers/freelancers, the ADs shall have secure and suitable online transaction platform, and arrangement for documentary formalities before disbursement of funds.
The ADs are also allowed to remit IT expenses upto $500 in a calendar year on behalf of individual developers/freelancers of mobile Apps and games having acknowledgements/training/ bootcamps/hackathons/course participation certificates on mobile application development through virtual (debit/credit/pre-paid) cards.
Irrespective of the limit, developers/freelancers are permitted to remit their bonafide business expenses out of balances held in export retention quota (ERQ) accounts through digital wallet, according to the notification.