The central bank of Bangladesh has issued a guideline allowing banks to issue international debit cards (IDCs) in favour of eligible persons against their annual travel entitlements.
Under the provisions, IDCs will be issued within annual travel entitlement with endorsement on passports, according to a notification, issued by the Bangladesh Bank (BB), on Tuesday.
The authorised dealer (AD) banks will have suitable arrangements in the local currency accounts to which IDCs are linked so as to be ensured that the amount in foreign exchange cannot be expensed in excess of endorsement within the annual travel entitlement.
The local currency accounts to which IDCs are linked will have sufficient funds to support the expenses to be met from the cards.
Similarly, the ADs should retain endorsed amount equivalent in Taka from local currency accounts in the margin accounts to be maintained in the names of customers for smooth adjustment of the expenses incurred through IDCs, according to the guideline.
Currently, the banks are allowed only to issue international credit/pre-paid card (ICC/IPC) against the annual personal travel quota entitlements of the prospective cardholders in line with the existing Guidelines for Foreign Exchange Transactions.
