Bangladeshi citizens applying for overseas visas are set to benefit from a major relaxation in foreign payment procedures, as the country’s central bank has introduced a simpler mechanism for sending visa bond funds abroad through authorised banks.
In a circular issued on Monday by Bangladesh Bank’s Foreign Exchange Policy Department-1, new guidelines were announced allowing banks to facilitate the transfer of refundable visa security deposits, commonly known as “visa bonds”, on behalf of applicants. The move is expected to reduce procedural complications that previously made such payments difficult for many Bangladeshis seeking foreign visas.
Under the revised policy, if a foreign country requires an applicant to deposit a refundable security amount as part of its visa approval conditions, local banks will now be permitted to transfer that amount directly overseas, provided specified conditions are met.
Previously, many applicants faced significant challenges in arranging these payments, as existing foreign exchange regulations did not clearly allow such transfers through regular banking channels. This often forced applicants to rely on alternative methods or face delays in completing visa formalities.
According to the circular, banks may now issue international or virtual payment cards in the applicant’s name with the required funds preloaded. Customers who already possess international cards will also be allowed to reload funds within their approved travel quota limits for the sole purpose of paying visa bonds or related refundable security deposits.
Bangladesh Bank has emphasised that these funds must only be used for visa-related security payments and cannot be diverted for other overseas expenses.
The new facility will also be available through Exporters’ Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, and international cards linked to such accounts. This is likely to provide greater flexibility for eligible customers who maintain foreign currency holdings.
Industry experts believe the measure will be particularly beneficial for applicants to countries such as the United States and others where immigration authorities often require financial guarantees or refundable deposits to ensure compliance with visa conditions.
The initiative is also expected to improve transparency in foreign remittance procedures by bringing these transactions under formal banking supervision.
Key Features of the New Policy
| Feature | Previous Situation | New Arrangement |
|---|---|---|
| Visa bond payment | Difficult and often unclear process | Permitted through banks |
| Payment method | Limited options | International/virtual cards allowed |
| Existing cardholders | No clear reloading provision | Reloading permitted under travel quota |
| Eligible accounts | Restricted | ERQ and RFCD accounts included |
| Usage limitation | Not formally specified | Only for visa bond/security deposit payments |
What Is a Visa Bond?
A visa bond is a refundable financial guarantee deposited by a visa applicant as security. Certain countries require this amount to ensure that travellers comply with visa terms, including returning to their home country before the authorised stay expires.
If the applicant fulfils all visa conditions, including departure requirements, the deposited amount is generally refunded in full or according to the issuing country’s regulations.
For Bangladeshi travellers, students and temporary workers, this regulatory update is expected to streamline overseas visa applications and reduce uncertainty surrounding mandatory financial guarantees. By formally enabling banks to handle such transactions, Bangladesh Bank has effectively removed a long-standing barrier in the international visa application process.