Bangladesh Bank has allowed the use of international debit, prepaid and credit cards to pay tuition fees and other authorised educational expenses for studying abroad, easing payments to foreign universities and online education platforms.
In a circular issued on Monday, the central bank said Authorised Dealer (AD) banks may issue such cards in the name of the student or the person bearing the student’s education expenses.
This decision has been made due to the increasing demand for paying educational expenses to foreign universities and admission platforms through international cards.
Bangladesh Bank said transactions made for education-related expenses will not be adjusted against the travel quota. IThis means that this authorized money paid for education will be considered separately outside of existing travel facilities.
The cards may be issued in the name of the student or the person financing the student’s education. AD banks will be responsible for completing all required regulatory formalities.
The cards must be used only to pay approved education-related expenses within the specified period, the central bank said.
AD banks have also been instructed to maintain proper records and report all transactions to Bangladesh Bank using the prescribed purpose codes.