Bangladesh Bank (BB) has introduced a bank-intermediated framework for processing cross-border digital payments, aiming to modernize the country's payment infrastructure, facilitate outward remittances, and promote digital financial inclusion. The central bank issued a circular today through its Foreign Exchange Policy Department (FEPD), allowing Authorized Dealers (ADs) to collaborate with foreign payment service providers, digital platforms, and online payment gateway service providers (collectively termed CDPSPs) to facilitate cross-border digital payment services.
Under the new framework, ADs will be able to facilitate the opening of digital wallets and stored-value accounts, known as Digital Value Accounts (DVAs), for individuals in whose favour foreign exchange is released. Every DVA must be linked to a Master DVA or settlement account maintained by the concerned bank and will operate strictly as a sub-account, ensuring full visibility and control over all transactions by the bank.
Resident Bangladeshis can use DVAs for private, medical, and official travel expenses. DVA holders can also make cross-border online payments of up to $300 per transaction. The accounts may be used for payments related to IT-enabled services, visa processing fees, membership subscriptions, and online hotel bookings.
For businesses, up to three top-level officials of eligible entities will be allowed to use DVA facilities against Export Retention Quota (ERQ) accounts for bona fide foreign business expenditures. To ensure transparency and regulatory compliance, banks will be required to maintain mirror ledgers of all DVA transactions and establish real-time system integration with their partner CDPSPs.
The circular also states that any unutilized balances in DVAs will remain under the control of the banks and will be subject to repatriation or adjustment in accordance with existing foreign exchange regulations. Bangladesh Bank has directed all ADs to maintain robust Know Your Customer (KYC), Customer Due Diligence (CDD), and Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) measures while providing the services. Banks intending to offer outward remittance services under the new framework must obtain prior regulatory acknowledgement from the Bangladesh Bank Head Office.
