Bangladesh is opening the door to accommodate more international electronic funds transfers and payments under a central bank move to allow the payment of fees for studies abroad using credit cards issued in the country.
Under laws prevalent in Bangladesh, credit cards cannot be used to make cross-border payments for goods, services or other purposes.
Bangladesh Bank’s foreign-exchange department has begun allowing individuals to use Visa- and MasterCard-branded credit cards to pay for applications, registrations, admissions and examinations in connection with foreign educational institutions, according to a circular distributed July 15. The move comes after many students appealed to the central bank to make their fee-payment procedure easier.
In addition, the department is allowing the use of credit cards toward membership-fee payments at professional and scientific institutions based overseas.
Individuals not holding credit cards also may make online payments using a “virtual card,” which essentially is card information but no plastic, for the required amount, according to the circular.
However, card-issuing banks must report all such transactions, including those initiated with virtual cards, to the central bank monthly.
In Bangladesh, students currently transfer funds to the foreign institutions via wire transfers, electronic funds transfers and drafts, creating difficulty for students wanting to study abroad.
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