TDS Desk:

Bangladesh Bank (BB) has permitted small and medium enterprises (SMEs) to remit up to $3,000 annually for bona fide current expenses abroad, in a move aimed at supporting the sector’s growing role in the economy.

The central bank said the facility may be used through traditional banking channels or refillable international cards, to be issued by authorised dealer (AD) banks.

Each SME must be registered with the SME Foundation to qualify, according to a BB circular.

Under the new rules, the ADs may issue “SME Cards” with a ceiling of $600 per refill to nominated officials of enterprises.

The combined total of card refills and banking channel remittances cannot exceed the $3,000 annual limit.

The circular clarified that outward remittances for royalty, technical know how, assistance fees and franchise payments remain subject to Bangladesh Investment Development Authority (BIDA) guidelines and are excluded from this facility.

Transactions must be routed through a single nominated AD branch, with any change requiring a written application and direct file transfer.

ADs are also required to conduct due diligence, including tax deductions, compliance with KYC and AML/CFT standards, and routine reporting to the central bank.