Bangladesh Bank allows use of international cards for education expenses abroad

Bangladesh Bank allows use of international cards for education expenses abroad

Bangladesh Bank has permitted the use of international cards to pay tuition fees and other education-related expenses for higher studies abroad. From now on, authorised dealer (AD) banks will be able to issue debit, prepaid or credit cards to students for paying various fees to foreign educational institutions.

A notification in this regard was issued by Bangladesh Bank on Monday, August 10. It said the decision was taken in response to the growing demand for using international cards to pay education expenses through foreign universities and admission-related platforms.

According to the notification, such cards may be issued in the name of the student or the person bearing the education expenses. The cards can be used to pay tuition fees to foreign educational institutions and other approved education-related expenses.

Bangladesh Bank said such education-related transactions will be considered separately. This means such payments will not be counted under the existing travel quota or other foreign exchange facilities.

However, the prescribed regulatory rules and formalities must be followed when using the cards. AD banks have been instructed to ensure that the cards are used only for approved education-related payments within the prescribed timeframe.

Additionally, they have been directed to maintain proper records of transactions and report all transaction details to Bangladesh Bank using the prescribed purpose codes.