Money sent abroad through legal channels for medical treatment rises tenfold
People no longer need approval from Bangladesh Bank to send up to USD 15,000 a year for medical treatment abroad. Previously, the limit was USD 10,000.
A large share of medical expenses is still being sent through hundi.
Even a year ago, anyone wishing to send more than USD 10,000 (Tk 1.24 million) abroad for medical treatment had to obtain approval from Bangladesh Bank. Obtaining that approval was quite difficult for ordinary people.
As a result, many avoided the hassle and used hundi or other informal channels to take foreign currency out of the country to cover treatment expenses.
However, the situation has changed since the limit for sending dollars abroad for medical treatment was increased. The amount of money sent through legal banking channels for medical expenses has risen severalfold.
In the 2021–22 fiscal year, only USD 3.4 million was sent abroad legally for medical treatment. In the latest 2025–26 fiscal year, the figure increased to USD 32.7 million. In other words, money sent legally for overseas medical treatment has increased nearly tenfold over the past four years.
Prime Minister Tarique Rahman, speaking at the 81st anniversary programme of Dhaka Medical College on 11 July, said: “Every year, approximately USD 5 billion leave Bangladesh for medical treatment abroad. Many people—millions of our citizens—are going overseas for treatment. As a result, our valuable foreign exchange is also leaving the country.”
The Prime Minister's remarks indicate that a large share of overseas medical expenses is still being paid through hundi or other informal channels.
Shahjalal Islami Bank is one of the banks actively involved in foreign trade. Its Managing Director, Mosleh Uddin Ahmed, told Prothom Alo that increasing the limit for sending dollars abroad for medical treatment is a positive initiative.
However, if customers need more than the permitted amount, they generally do not want to apply to Bangladesh Bank for approval and instead make alternative arrangements on their own, he added.
According to him, if banks were given the authority to approve overseas medical expenses based on a doctor's prescription, the amount of money sent through legal channels would increase further. This could reduce the use of hundi and have a positive impact on remittance inflows.
Although such a facility may not be necessary for all diseases, it could be introduced for patients suffering from critical illnesses, he argued.
Benefits of the new facility
After the fall of the Awami League government in August 2024, various visa-related complications arose for Bangladeshis seeking Indian visas. India suspended visa issuance for an extended period.
As a result, many people seeking advanced medical treatment abroad began travelling to Thailand, Singapore, the United Kingdom and the United States instead of India. Medical treatment in these countries is significantly more expensive than in India. At the same time, the value of the US dollar increased, raising patients' foreign currency requirements.
In this context, Bangladesh Bank increased the limit for sending dollars abroad for medical treatment in May 2025. According to the circular, banks can now release up to USD 15,000 for customers without prior approval from Bangladesh Bank. Approval from the central bank is still required for amounts exceeding that limit. Previously, the limit was USD 10,000.
Bangladesh Bank says up to USD 15,000 in foreign currency can now be released either in the name of a hospital or through an international payment card. Within this limit, customers may also take up to USD 5,000 in cash if they wish.
As a result, patients whose treatment costs are within the USD 15,000 ceiling are directly benefiting from the facility.
One such beneficiary is private service holder Touhidul Islam. He told Prothom Alo that his wife is undergoing cancer treatment in Thailand. Since the scope for sending money legally for medical treatment has been expanded, they are now able to cover the expenses using a bank card.
Previously, patients or their relatives often had to use illegal channels such as hundi to obtain foreign currency in cash for medical expenses. This also involved additional risks.
Spending through legal channels has increased
Following the increase in the limit for sending dollars abroad for medical treatment, the amount of money transferred through legal banking channels has risen rapidly. Over the past four years, spending through legal channels for overseas medical treatment has increased nearly tenfold.
According to Bangladesh Bank data, USD 3.5 million was legally taken abroad for medical expenses in the 2021–22 fiscal year. The amount fell to USD 1.8 million in 2022–23. It then jumped to USD 10 million in 2024–25. In the latest 2025–26 fiscal year, legal spending on overseas medical treatment rose to USD 32.7 million.
In other words, within just four years, the amount sent through legal channels increased from USD 3.4 million to USD 32.7 million.
However, according to people associated with the sector, the USD 32.7 million sent through legal channels represents only a small fraction of Bangladesh's actual overseas medical expenditure.
Various estimates suggest that Bangladeshi patients spend USD 4 billion to USD 5 billion annually on medical treatment abroad. A large portion of that spending is still made by travelling on tourist visas or by sending money through informal channels.