International cards can be used to pay for overseas education expenses
File photo. BSS.
The Bangladesh Bank has permitted the use of designated international cards for paying tuition fees and other education-related expenses of Bangladeshi students studying abroad. The central bank issued a circular on this matter today (Monday).
The circular states that Authorized Dealer (AD) banks can now issue or allow the use of international cards to facilitate legitimate payments for students enrolled in regular courses at recognized foreign educational institutions.
Under this facility, fees for undergraduate and postgraduate programs, language courses, and professional diploma or certificate programs can be paid.
The central bank said the initiative has been taken as foreign educational institutions and service providers are increasingly accepting tuition fees, admission fees, and other education-related charges through international cards and online platforms. However, transactions conducted under the new arrangement for overseas education will be considered separately and will not be incorporated with the existing travel quota or other foreign exchange facilities.
Authorized banks may issue debit, prepaid, or credit cards for this purpose. For credit cards, applicable limits will be determined according to the issuing bank's internal policies, within the limits set by Bangladesh Bank.
The circular further said that the card may be issued in the name of the student himself/herself or in the name of the person bearing the student's educational expenses.
On the other hand, before authorising such transactions, banks must complete necessary regulatory procedures, including customer identification and compliance with Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) provisions.
Authorized banks have been directed to put in place appropriate control measures so that payments are made only to eligible beneficiaries and remain within the amount loaded on the card and the card's validity period. All transactions conducted under this facility must be reported to Bangladesh Bank through the TM module using appropriate purpose codes.
The central bank said that other existing instructions regarding foreign exchange transactions for pursuing education abroad will remain unchanged.
