Up to $10,000 of IT export proceeds can be brought in through PSPs: Cenbank
BB allowing licensed PSPs for repatriation of small value IT-related services rendered by exporters
From now on, up to $10,000 of IT export proceeds can be brought in through payment service providers (PSPs).
The Bangladesh Bank has issued a circular on Sunday (26 January) allowing licensed PSPs for repatriation of small value IT-related services rendered by exporters.
Usually, such remittance services are normally provided by banks and mobile financial service providers (MFSPs). The Bangladesh Bank has widened the scope by bringing PSPs as remittance service providers in association with counterparts abroad.
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In this regard, an official of the central bank said, "We consider up to $10,000 as a small value. The Bangladesh Bank in 2011 allowed Authorized Dealer [AD] banks to make arrangements with OPGSPs to repatriate small value service export proceeds.
"Some banks are operating the transactions," he said, adding that the transactions are huge but the value of each transaction is small.
The new policy is expected to be beneficial to IT exporters, freelancers in particular, for easy repatriation of service income through local PSPs, he noted.
On 10 February 2021, the Bangladesh Bank allowed MFSPs to provide repatriation services against small value IT related payments.
In this case, MFSPs can make standing arrangements with internationally recognised foreign payment service operators like Online Payment Gateway Service Providers (OPGSPs), digital wallet providers and/or aggregators abroad.
