Foreign Remittance means remittance of foreign currencies from one place/person to another place/person. In broad sense, foreign remittances include all sale and purchase of foreign currencies on account of Import, Export, Travel and other purposes. However, specifically Foreign Remittance means sale and purchase of foreign currencies for the purposes other than export and import. And these can be categorized into private, official and commercial remittances.
Foreign Outward Remittance:
Family remittance facility: Foreign nationals working in other country with the approval of the Government may remit through bank 75% of net monthly salary and 100% of leave salary as also actual savings and admissible pension benefits.
Membership fee and registration fee: Banks may remit without prior approval of respective authority, the membership fees of foreign professional/scientific organizations or fees for examination.
Education: Without prior permission of Bangladesh Bank, ADs are allowed to release foreign exchange on behalf of students studying abroad.
Travel: ADs may release foreign currencies for traveling under the travel quota. The quota is set at $7000 per year for visit in countries other than SAARC countries. Quota for SAARC member countries and Myanmar is $5000 for travel by air and by overland route In case of minor the admissibility is just half.
Health/Medical: Banks without prior approval of respective authority may release foreign exchange up to S 10,000 for medical treatment abroad on the basis of the recommendation of the medical board/specialist set up by the Health Directorate and the cost estimate of the foreign medical institution. Seminars and workshops: without prior approval of Banks may release
US$400 per diem for attending in the conferences, seminars and workshops.
Foreign nationals: ADs may issue foreign currency TC to foreign nationals without any limit and foreign currency notes up to US$300 or equivalent per person against surrender of equivalent in foreign currencies.
Remittance for Haji: Banks may release foreign exchange to the intending pilgrims for performing Hajj as per instructions of respective authority.
Official visit: For official visit abroad by the officials of government and other organizations Banks may release foreign exchange as per entitlements fixed by the Ministry of Finance.
Business travel quota for importers and non-exporters: Subject to annual upper limit of USS5,000 importers are entitled to carry business travel quota and non-exporting producers quota @ 1% of their imports turnover settled during the previous year declared in their tax returns.
Exporters’ retention quota: Merchandise exporters may retain up to 60% realized FOB value of their exports in foreign currency accounts (for garments exporters, the quota is 15%) may use for business visit abroad, participation in export fairs, seminars, office maintenance abroad, import of raw materials.
Remittances
A portion of the wages of migrant workers earned in foreign countries and
sent back to their home country – are a strong source of foreign exchange for labor sending countries used to pay import liabilities; improve the balance of payments; build foreign exchange reserves; service external debt, and enhance the viability of the recipient countries’ external sector. On the domestic front, remittances increase the household incomes of migrants’ families; improve living standards; enhance savings; generally contribute to national economic growth.
Certain Rules and Provisions for remittance services:
-As per Guidelines for Foreign Exchange Transactions, the term Inward Remittances, includes remittance by T.T., М.Т., Drafts etc., but also purchase of bills, drafts, Traveler’s cheques and foreign currency notes and coins, cheques issued on foreign banks in favour of beneficiaries. The authorized dealers banks may freely purchase foreign currencies; Remittances equivalent to USD 10000 and above should be reported to respective authority properly.
-Only authorized Dealers and authorized moneychangers may freely buy foreign currency notes, coins and T.Cs from the incoming passengers regardless of nationality and regardless of whether or not a declaration on specific Format.
-Incoming passengers may bring in any amount of foreign exchange with declaration in Form at the time of arrival; no declaration is necessary for amounts up to USD 5000; for non-resident, the entire amount brought in with declaration or up to USD 5000 brought in without declaration may be freely taken out at the time of departure or may deposit the amount in F.C Account or NFCD Account subject to submission of Form FMJ for excess of USD 5000 or equivalent.
-The authorized dealer banks are permitted to dispose of foreign currency notes etc. by way of sale to other ADs and general public in accordance with the instructions of the Bangladesh Bank; they may also dispatch to agents or correspondents abroad for credit to their Foreign Currency accounts with the approval.
-In addition to normal purchases from the public, authorized moneychangers and other authorized dealers, an AD may supplement their holdings of foreign currency notes from abroad with approval from respective authority.