Dhaka: In a significant move for Bangladeshi students pursuing education overseas, Bangladesh Bank has authorized Authorised Dealer (AD) banks to issue and facilitate the use of international cards-debit, credit, or prepaid-for the payment of tuition and other education-related fees directly to foreign institutions.

According to United News of Bangladesh, the transactions made under this new provision will be treated separately and will not impact the student’s annual personal travel quota or other standard foreign exchange privileges, as announced by the central bank in a circular on Monday. This directive is designed to streamline legitimate cross-border transactions, especially as many foreign educational institutions and enrollment platforms increasingly require digital fee payments via international cards.

The guidelines specify that this facility is available to students enrolled in regular courses abroad. This includes undergraduate, postgraduate, language courses, whether prerequisite to a bachelor’s degree or not, and professional diploma or certificate programs at recognized institutions.

Key terms and conditions highlighted in the circular include the issuance of international cards, which can be in the form of debit, prepaid, or credit cards. For credit cards, the credit limits will conform to the issuing banks’ internal credit policies and central bank limits. These cards can be issued either in the student’s name or the person financing the student’s educational expenses.

AD banks are authorized to load the necessary foreign exchange onto the card following regulatory due diligence, such as Know Your Customer (KYC) and Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) compliance. The loaded amount remains valid for a period determined by the bank. Additionally, the cards are restricted to educational payments only, and banks are required to enforce stringent controls to ensure funds are used solely for this purpose.

Banks must also maintain accurate transaction records, monitor usage, and report all transactions to Bangladesh Bank via the Online Foreign Exchange Transaction Reporting System (TM Module) using appropriate purpose codes. All other general instructions concerning foreign exchange release for overseas education remain the same.