Bangladesh Bank allows receiving inward remittances through OPGSPs

Monday, 18 October 2021

Bangladesh Bank (BB) has allowed receiving inward remittances through online payment gateway service providers (OPGSPs).

The foreign exchange policy department of the central bank on Monday issued a circular approving the authorised dealers (ADs) banks to repatriate remittances through OPGSPs.

The circular states that ADs are required to enter into an arrangement with internationally-recognised OPGSPs and maintain separate nostro (an account that a bank holds in a foreign currency in another bank) collection account for each OPGSP, reports UNB.

“Service exporters availing of this facility are, among others, allowed to open notional accounts with only those OPGSPs having arrangements with ADs in Bangladesh,” the circular says.

To widen the scope of repatriation of income against service exports, the central bank decided that ADs may allow their service exporter-customers to enter into arrangements, including maintenance of merchant accounts, with international marketplaces or platforms.

In addition to such accounts, service exporters may maintain notional accounts, without limiting to licensed OPGSPs, with internationally reputed payment service aggregators, payment facilitators, digital wallets or other legitimate payment systems licensed by the regulatory authorities concerned.

Accordingly, ADs can facilitate repatriation of service income deposited in their nostro accounts by international market places/platforms, including eligible foreign payment operators, regardless of having arrangements and maintaining separate nostro collection accounts.

In this context, ADs have to obtain detailed information from their service exporter-customers regarding the maintenance of merchant accounts with international market places/platforms and/or notional accounts with eligible foreign payment operators.

Besides, the declaration on the nature of services to be provided by service exporter-customers with supporting information and documents thereon has to be ensured by the ADs.

An undertaking from their customers to the effect that they will arrange repatriation of the service income within statutory period either by way of relevant market places/platforms or eligible foreign payment operators, or credit to their merchant/notional accounts for immediate transfer to Bangladesh.

The ADs has to credit the receipts in equivalent local currency to respective bank accounts, or arrange to transfer the same to digital wallets maintained with Mobile Financial Service Providers licensed by the Bangladesh Bank.