Bangladesh Bank (BB) on Tuesday allowed banks to issue international debit cards in favor of eligible persons against their annual travel entitlements.
It is the first time that BB has given permission on issuing the cards, as banks can now issue only international credit cards and prepaid cards to their clients on demand and upon fulfillment of criteria.
“It has been decided that ADs (authorized dealers) of banks can issue IDCs (international debit cards) in favor of eligible persons against their annual travel entitlements,” said a BB circular issued on the day.
According to the circular, the international debit cards would be issued through maintaining limits within annual travel entitlement quotas.
Authorized dealer banks must have arrangements in local currency accounts to which IDCs are linked in order to ensure that the spent foreign exchange amount does not cross limits, the notice adds.
The notice said the local currency accounts to which IDCs are linked must have sufficient funds to support expenses to be borne through the cards.
Alternatively, ADs should retain endorsed amounts equivalent in Taka from local currency accounts in the margin accounts to be maintained in the names of customers for smooth adjustment of the expenses to be spent through IDCs.
Talking to Dhaka Tribune, Mohammad Khurshid Wahab, BB General Manager (Foreign Exchange Policy Department) of Bangladesh Bank, “Banks are now allowed to issue international debit cards against annual travel entitlements for the first time. Previously, banks used to issue international credit cards and pre-paid cards in favor of eligible persons against their annual travel entitlements.”