BB allows use of int'l cards for air ticket purchases in Bangladesh
BB allows airlines to retain ticket sale proceeds in foreign currency accounts maintained with AD banks in Bangladesh
Highlights:
- Resident Bangladeshis with valid visas [where applicable] may use international cards
- Tickets must be purchased from airlines operating in Bangladesh
- Sale proceeds need to be settled through AD banks in Bangladesh
The Bangladesh Bank has allowed resident Bangladeshi nationals to purchase air tickets using international cards from airlines operating in the country.
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The central bank issued the directive through a circular from the Foreign Exchange Policy Department today (19 November), addressing authorised dealer (AD) banks.
The circular said travellers from Bangladesh often face inconvenience in purchasing air tickets at competitive prices due to the unavailability of international card-based settlement options within Bangladesh.
To facilitate fair pricing, convenience and market competitiveness, it has been decided that resident Bangladeshi nationals, having visas where applicable, may use their international cards for purchase of air tickets from airlines operating in Bangladesh for travelling abroad, it added.
The approval comes with several conditions.
According to the central bank, resident Bangladeshis holding appropriate visas may now use their international cards to buy outbound air tickets directly from airlines operating in Bangladesh – for example, on routes such as Dhaka-Singapore or Dhaka-Dubai, etc.
To ensure transparency and proper channelling of foreign exchange earnings, the circular mentioned that all ticket sale proceeds need to be settled through payment arrangements with AD banks in Bangladesh.
The proceeds will be captured within the formal banking sector as foreign exchange earnings.
The circular further allowed international cards issued under travel entitlement to be refilled or replenished up to the exact amount spent on ticket purchases. Such refills may only be made once the AD bank confirms full realisation of the ticket sale proceeds through domestic banking channels.
Additionally, the Bangladesh Bank has allowed airlines to retain ticket sale proceeds in foreign currency accounts maintained with AD banks in Bangladesh.
The balances held in such accounts may be used to remit eligible surplus earnings abroad without encashment, subject to applicable regulatory guidelines.
The ADs shall adhere to the reporting routine to the Bangladesh Bank and other provisions relating to the issuance and use of international cards shall remain unchanged, the circular added.
