Dollar release limit for treatment abroad raised to 30,000; education remittance eased too

Bangladesh Bank has decided to double the maximum limit for releasing foreign currency to meet the cost of medical treatment abroad. From now on, authorised dealer (AD) banks will be able to release up to US$30,000, or its equivalent in foreign currency, for a customer's treatment without prior approval from the central bank. Earlier, this limit was set at a maximum of US$15,000.

A circular to this effect was issued on Monday (9 November) by the Foreign Exchange Policy Department-2 of Bangladesh Bank and sent to all authorised banks.

According to the notification, along with easing the rules for paying treatment costs abroad, the long-standing complications in sending school-level education expenses abroad have also been resolved.

From now on, there will be no requirement of prior permission from the central bank for sending all expenses for secondary and higher secondary level studies abroad. Commercial banks will be able to send these expenses directly.

However, banks will have to verify and confirm whether there is any opportunity for free education in the relevant country.

This relaxed rule will also apply to professional and various technical certificate-based courses, as well as recognised education programmes conducted through distance learning or correspondence.

For the expenses of such regular courses too, no prior approval from the central bank will be needed to send them abroad; banks themselves will be able to release the required foreign currency.

On the other hand, financial facilities have also been ensured for resident Bangladeshis returning after travelling abroad. Excess foreign currency brought back after personal travel, treatment or education-related work can now be deposited directly into a Resident Foreign Currency Deposit (RFCD) account by declaring it in the Form FMJ prescribed by the customs authorities.

However, except for these special cases, all other existing rules and conditions of the foreign exchange transaction law will remain unchanged as before, Bangladesh Bank said.