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Feb 052023 Fepdl 02 e

The Bangladesh Bank's FE Circular Letter No. 02 outlines guidelines for Authorized Dealers and Mobile Financial Service Providers regarding the retention quota accounts for exports of software and ICT services. It allows for repatriation of inward remittances through various digital payment systems and permits the issuance of international cards against balances in exporter's retention quota accounts. The circular emphasizes compliance with regulatory instructions and encourages service providers to utilize these facilities for foreign currency transactions.

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Noman Abdullah
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77 views1 page

Feb 052023 Fepdl 02 e

The Bangladesh Bank's FE Circular Letter No. 02 outlines guidelines for Authorized Dealers and Mobile Financial Service Providers regarding the retention quota accounts for exports of software and ICT services. It allows for repatriation of inward remittances through various digital payment systems and permits the issuance of international cards against balances in exporter's retention quota accounts. The circular emphasizes compliance with regulatory instructions and encourages service providers to utilize these facilities for foreign currency transactions.

Uploaded by

Noman Abdullah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Foreign Exchange Policy Department

Bangladesh Bank
Head Office
Dhaka.
www.bb.org.bd

FE Circular Letter No. 02 Date: February 05, 2023

Head offices/principal offices of all Authorized Dealers and


all licensed Mobile Financial Service Providers in Bangladesh

Dear Sirs,
Retention quota accounts for export of software, ICT and other services
Attention of Authorized Dealers (ADs) is invited to paragraph 23, chapter 8 of the
Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET) and its subsequent circulars
regarding the instructions relating to inward remittances against export of software, ICT services,
business services, professional/research and advisory services, etc. provided by resident
Bangladeshis. In addition to traditional banking channels, ADs can provide facilities to repatriate
inward remittances against ICT and other services channeled through online payment gateway
service providers, payment service aggregators, payment facilitators, digital wallets, or other
legitimate payment systems in terms of FE Circular No. 44, dated December 28, 2017 and FE
Circular No. 33, dated October 18, 2021. Licensed Mobile Financial Service Providers (MFSPs)
are also allowed to repatriate inward remittances against ICT services as per FE Circular No. 06,
dated February 10, 2021. Foreign currency out of inward remittances can be credited to
exporters’ retention quota (ERQ) accounts up to the prescribed limit as per paragraphs 27(c) and
27(d) of chapter 13 of GFET. Paragraph 2, chapter 19 of GFET permits ADs to issue
international credit/debit/prepaid cards against the balances held in ERQ accounts.

02. In order to facilitate ICT companies, freelancers and other cross border service
providers to bring their income in foreign currency into the country, ADs are advised to provide
ERQ account services to service exporters so as to enable them to carry out remittance
transactions from these accounts. ADs are also advised to issue international credit/debit/prepaid
cards for nominated officials of companies, and freelancers against the balances held in their
ERQ accounts for online payments abroad against bonafide requirements. Non-ADs providing
banking services to freelancers shall make arrangements with nearby ADs/CTPCs/head
offices/principal offices for opening ERQ accounts and issuing international cards. ADs
providing settlement account services to MFSPs shall arrange to open ERQ accounts and to issue
international cards to freelancers in accordance with FE Circular No. 06/2021.

As usual, ADs shall comply with regulatory instructions including reporting routine and
regulations relating to taxes. Please bring the contents of this circular letter to the notice of all
your constituents and ensure meticulous compliance thereof.

Yours faithfully,

(Md. Sarwar Hossain)


Director (FEPD)
Phone: 9530123

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