Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has opened online payment allowing Online Payment Gateway Service Providers (OPGSPs) to facilitate receiving of small value service exporters' overseas payments at a lower cost, officials said.
Under the new provisions, the exporters will be able to receive their overseas payments through the OPGSPs such as Paypal, Moneybookers, Best Payment Gateway and Virtual Pay online platforms.
"It will only be available for service export in non-physical form of value not exceeding US$ 500," a senior official of the Bangladesh Bank (BB) said, adding that it will help the exporters, particularly small value service providers, to receive their overseas payments easily at a minimum cost.
"….it has been decided to allow the authorised dealers (ADs) to offer the facility of repatriation of remittances against small value service exports in non-physical form such as data entry, data process, off-shore IT service, business process outsourcing etc through the OPGSPs," the BB said in a circular issued on Sunday.
The foreign exchange dealer banks, officially known as ADs, will have to enter into standing arrangements with internationally recognized OPGSPs and maintain a separate Nostro collection account for each OPGSP to repatriate the service export-related payments.
"Service exporters availing of this facility shall also open notional accounts with the OPGSPs," the circular said, adding that it is to be ensured that no funds are retained in such accounts and all receipts should be automatically swept and pooled into the Nostro collection accounts maintained by the ADs.
The ADs will repatriate the balances held in the Nostro collection accounts and arrange to credit the respective exporter's account with a bank in Bangladesh on being confirmed that the export proceeds have been swept and pooled into the Nostro collection account from the exporter's notional account, according to the provisions.
"The banks will have to report to the Foreign Exchange Policy Department of the central bank with necessary details after entering into arrangement with any OPGSP," another central bank official said.
He also said the ADs will have to exercise due diligence in respect of the transactions with OPGSPs and comply with the foreign exchange regulations, anti-money laundering or combating of terrorism financing regulations and any other relevant laws and regulations in force.
Market operators welcomed the latest BB move saying that it will be able to make a positive impact on the country's growing IT sector.
"It will help to increase the inflow of inward remittance in the near future," President of the Bangladesh Association of Software and Information Services (BASIS) Mahboob Zaman was quoted by the Financial Express (FE), a local newspaper, as saying.
Mr. Zaman also said it's a good initiative of the BB for boosting E-commerce.
BBN/SSR/AD-08Aug11-11:07 am (BST)