Bangladesh Bank raises limit for sending foreign currency for treatment and study abroad

Bangladesh Bank has eased the rules for resident foreign currency deposit (RFCD) accounts, alongside the cost of sending money abroad for treatment and study.

Under the new directive, up to 30,000 US dollars can now be sent at a time for treatment abroad without prior approval from Bangladesh Bank.

On Monday (9 November), a circular (Circular No. 11) in this regard was issued by the Foreign Exchange Policy Department-2 (FEPD) of Bangladesh Bank and sent to authorised dealer (AD) branches.

For medical expenses, the limit for releasing foreign currency without prior approval has been raised from the existing 15,000 US dollars to 30,000 US dollars (or the equivalent in another currency).

For study abroad, the new rules remove the requirement of prior approval from Bangladesh Bank for sending the cost of school, secondary and higher secondary (HSC-equivalent) level education. However, banks may release the money after verifying whether the educational institution offers free education.

For online and distance learning (correspondence courses), alongside professional certificate courses, the fees for regular institutional study through distance learning or online can now also be sent abroad without the central bank's permission.

The rules for depositing into RFCD accounts have also been eased. With the increased facility for sending foreign currency for treatment, study and travel, resident Bangladeshis can now deposit foreign currency they bring back from abroad into an RFCD account simply by declaring it to the customs authorities in 'Form FMJ'.

The central bank has directed that this instruction be implemented with immediate effect.