In a move to facilitate international tuition payments, Bangladesh Bank (BB) has officially allowed the use of designated international cards for paying tuition fees and other education-related expenses of Bangladeshi students studying abroad. This policy aims to address the growing demand for international card payments by students enrolled in foreign institutions.
Eligibility and Scope of the Policy
The new policy, outlined in a recent BB circular, applies to both undergraduate and postgraduate programs, language courses, and professional diploma or certificate programs. Authorized Dealers (ADs) can issue debit, prepaid, or credit cards for these payments. While credit card limits will be determined by the issuing bank's internal policy, BB has set certain guidelines to ensure compliance with the new regulations.
The cards can be issued in the name of either the student or the person responsible for the student's educational expenses. Before facilitating these transactions, banks must complete all necessary regulatory formalities, including Know Your Customer (KYC) and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) requirements. BB has also instructed ADs to implement appropriate controls to ensure that payments are made only to eligible beneficiaries and within the card's loaded amount and validity period.
Regulatory Compliance and Reporting
All transactions under this facility must be reported to BB through the TM Module using appropriate purpose codes. The central bank emphasized that all other existing instructions relating to foreign exchange transactions for overseas education will remain unchanged. This policy is expected to streamline the payment process for students and their families, reducing the burden of navigating complex foreign exchange regulations.
By allowing the use of international cards for tuition payments, BB aims to make the process more convenient and efficient for students and their families. This policy is likely to benefit a significant number of Bangladeshi students pursuing higher education abroad, ensuring smoother financial transactions.
