BANGLADESH BANK eases forex rules for outbound students

Any bank providing education services from now on is free to release
required foreign currencies for outbound students, a new development for
prospective higher study seekers. No prior central bank approval to this
service is required, according to a Bangladesh Bank (BB) circular. The BB's
move came yesterday when it amended some clauses in the foreign exchange
transaction guideline. "In a bid to liberalise foreign currency transaction
process, the central bank has decided to allow scheduled banks to release
foreign currency for the people going abroad for higher studies," says the
circular sent to the banks. Officials from private companies or non-
governmental organisations (NGOs) will also enjoy the same facilities in
case of their foreign trips for training purposes. Earlier, thousands of
outbound students faced hassles like visiting the central bank and wasting
time (15-45 days) to get his or her required foreign currencies endorsed.
Under the new facility BB has allowed, students intending to remit foreign
currencies from any bank are required to submit some documents to the bank
concerned. These documents include among others explanation of the amount of
foreign currencies needed, admission paper and unconditional offer letter
from the foreign educational institute. The release of such foreign
currencies is subject to the service providing bank's satisfaction on
perusal of the documents submitted. "The recognised bank must be satisfied
with the documents a student submits," the BB circular says. The private
company officials willing to take part in seminar, workshop or any training
abroad can also remit money to the organiser fulfilling this condition of
submitting documents. The subject of the training or workshop must be
matched with any training seeker's job profile. Among many required
documents, the training seekers will have to submit documents, including
organiser's invitation letter and employer's certificate to any bank from
where they are intended to obtain services. The government officials,
however, already enjoy this remitting facility without central bank's nod.
As per the circular, the banks that are offered to remit money to fight
against any lawsuit will have to get a go-ahead initially from the central
bank. On receipt of primary nod, banks can remit money for spending before
the lawsuit without any approval of the central bank. Earlier, in such case,
any bank had to get approval each time to remit money to fight any lawsuit
against bank.