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The central bank has enhanced the ceiling for outward remittances in case of IT expenses through digital wallet to US$500 from the earlier $300 to support freelancers, officials said.
“We’ve increased the limit of outward remittances on account of IT expenses to help freelancers or software developers meet their bonafide needs,” a senior official of the Bangladesh Bank (BB) told the FE.
He also said it will in turn help increase earnings from services exports.
The central bank issued a notification in this connection on Monday and asked all foreign exchange authorised dealer banks, known as ADs, to follow the latest instruction concerning outward remittances.
“The ADs are allowed to remit IT expenses within the permissible limit using both virtual cards and Online Payment Gateway Service Providers system,” the central banker explained.
Under the new regulations, the ADs may release IT expenses within permissible limit on behalf of individual developers/freelancers through their notional accounts (digital wallet) maintained with the gateway operators such as -Xoom, Paypal, Payza and Payoneer – to bring wider scope for cross-border transactions by alternative channel.
The ADs will arrange required amount in their NOSTRO accounts for the settlement of payment through notional accounts of gateway operators on post-funding basis.
For execution of online instructions from individual developers/freelancers, the ADs shall have secure and suitable online transaction platform, and arrangement for documentary formalities before disbursement of funds.
The ADs are also allowed to remit IT expenses upto $500 in a year on behalf of individual developers/freelancers of mobile apps and games having acknowledgements/training/ bootcamps/hackathons/course participation certificates on mobile application development through virtual (debit/credit/pre-paid) cards.
Irrespective of the limit, developers/freelancers are permitted to remit their genuine business expenses out of balances held in export retention quota (ERQ) accounts through digital wallet, according to the notice.
source-FE
