BB permits banks to issue international debit cards

Bangladesh Bank (BB) has allowed banks to issue international debit cards (IDCs) in favour of eligible persons against their annual travel entitlements, reports news agency BSS.

“Under the provisions, IDCs shall be issued within annual travel entitlement with endorsement on passports,” said a circular of the central bank of Bangladesh on Tuesday.

According to the circular, the authorised dealer (AD) banks shall have suitable arrangements in the local currency accounts to which IDCs are linked so as to be ensured that the amount in foreign exchange cannot be expensed in excess of endorsement within the annual travel entitlement.

As per the circular, the local currency accounts to which IDCs are linked will have sufficient funds to support the expenses to be met from the cards. Alternatively, the ADs should retain endorsed amount equivalent in taka from local currency accounts in the margin accounts, to be maintained in the names of customers for smooth adjustment of the expenses incurred through IDCs.

Currently, the banks are allowed only to issue international credit/pre-paid card (ICC/IPC) against the annual personal travel quota entitlements of the prospective cardholders in line with the existing Guidelines for Foreign Exchange Transactions.