The Bangladesh Bank has officially granted permission for the overseas remittance of funds required for visa bonds and refundable security deposits. This directive specifically addresses the financial prerequisites often mandated by foreign embassies, high commissions, and other relevant international authorities during the visa application process. Through a circular issued on Sunday, 10 May, the central bank outlined the regulatory framework under which these specific capital transfers may now be conducted by authorised dealer banks.
According to the new guidelines, if a visa bond or a refundable security deposit is a compulsory condition for an individual to obtain a visa, commercial banks are now empowered to remit the necessary funds abroad on behalf of the applicant. This measure is intended to streamline the administrative process for citizens and residents who previously faced hurdles in meeting the stringent financial demands of certain foreign jurisdictions that require guaranteed deposits or bonds as part of their entry protocols.
The circular further stipulates that banks are permitted to issue international or virtual cards in the name of the visa applicant. These cards can be pre-loaded with the specific amount required for the bond or security deposit. Furthermore, for customers who already possess international credit or debit cards, banks are authorised to replenish these cards with the necessary funds under the existing travel quota. However, the Bangladesh Bank has emphasised that such funds must be strictly utilised for visa-related financial obligations and no other purpose.
Rigorous oversight mechanisms have been established to ensure the integrity of these transactions. The central bank has mandated that if the relevant embassy or foreign authority subsequently returns the bond or security deposit, the funds must be repatriated to Bangladesh without delay. To facilitate this, commercial banks are required to maintain a separate register for these transactions and are under instruction to monitor the progress of fund returns on a regular basis. This ensures that the outflow of foreign exchange is temporary and that capital returns to the domestic economy once the visa conditions are fulfilled or the deposit period expires.
Before any funds can be remitted, banks are obligated to conduct a thorough verification of the applicant’s documentation. This includes the validation of a valid passport, the official demand letter or invoice from the embassy or relevant authority, and any other supporting paperwork that confirms the necessity of the payment. Additionally, the guidelines mention that banks must collect a reference or acknowledgement letter related to the specific visa application to confirm the legitimacy of the request.
The Bangladesh Bank has clarified the specific accounts from which these facilities can be accessed. Applicants may utilise funds from Exporters’ Retention Quota (ERQ) accounts or Resident Foreign Currency Deposit (RFCD) accounts. Furthermore, international cards issued against these specific accounts may also be used to facilitate the payments. By utilising these existing foreign currency mechanisms, the central bank aims to provide a structured and transparent route for individuals to meet international financial obligations while maintaining control over the nation’s foreign exchange reserves.
This regulatory update reflects a commitment to enhancing the ease of international travel and relocation for Bangladeshi nationals by addressing the practicalities of modern consular requirements. It provides a legal and systematic channel for the transfer of refundable deposits, thereby reducing the reliance on informal channels. The central bank’s insistence on document verification and the mandatory repatriation of returned funds serves as a safeguard against capital flight, ensuring that the facility is used solely for its intended purpose of supporting legitimate visa applications.