Bangladesh Bank has uploaded a draft circular in its website on Thursday seeking opinions from stakeholders on inward remittances against service income through online payment gateway service providers.
Under the current regulations, service providers can maintain notional accounts with online payment gateway service providers (OPGSPs) with only those OPGSPs having arrangements with authorized dealer (AD) banks in Bangladesh.
The draft circular has relaxed this requirement.
The draft circular said that AD banks can repatriate service income deposited in their nostro accounts by OPGSPs with whom service exporters maintain notional accounts.
In this context, AD banks will obtain (i) detailed information of their service provider customers regarding the notional accounts to be maintained with licensed OPGSPs abroad, (ii) declaration on the nature of services to be provided by service provider customers with supporting information and documents thereon, and (iii) undertaking from their customers to the effect that they will arrange repatriation of the service income immediately on credit to their notional accounts through concerned OPGSPs and accordingly customers' due diligences and other regulatory compliance will be observed.
The draft circular has instructed AD banks to credit respective accounts of their customers on receipt of deposits in their nostro accounts.
ERQ accounts of customers can also be credited upto the permissible limit at their option, the circular added. AD banks will obtain declaration from customers for amount exceeding USD 10,000 or its equivalent. The draft said that regulations on deductions of applicable taxes and payment thereof need to be complied with.
Foreign OPGSPs at their option can maintain bank accounts with AD banks in Bangladesh. Service income can be transferred to beneficiaries by debit to these accounts, the draft circular noted.
An official of central bank said that Bangladesh Bank in 2011 allowed AD banks to make arrangements with OPGSPs to repatriate small value service export payments.
Bangladesh Bank is trying to bring more simplification for which stakeholders' comments are sought on the draft policy.