Bangladesh Bank on Tuesday allowed authorised examination centres conducting international examinations such as O-Level, A-Level, TOEFL, and SAT in the country to collect fees in taka and remit the equivalent foreign currency abroad without seeking prior approval from the central bank.
BB issued a circular in this regard on Tuesday.
The new circular enables banks to directly process these outward remittances on condition that the exam centres are duly authorised by relevant foreign academic bodies.
The BB made the decision of not taking its prior approval with an aim to reduce procedural delays and facilitate smoother transactions for students and examination operators.
Under the rules, banks can now remit fees against invoices issued by exam centres, supported by detailed statements that include examinee information and applicable taxes such as source tax and VAT.
Previously, exam centres needed to obtain clearance from Bangladesh Bank before making payments abroad for such exams.
The new circular now delegates the responsibility to the banks, provided they perform necessary due diligence.
This includes verifying that the centres are properly authorised by the relevant foreign institutions and ensuring all transactions comply with tax and foreign exchange laws.
The remittance process must also adhere to a 90-day credit limit, meaning payments to overseas institutions must be settled within that timeframe.
Additionally, banks must verify that there are no duplicate payments and that the exams are not conducted for non-resident students.
By allowing the collection of fees in local currency and enabling direct remittance, the central bank expects the new system to reduce reliance on informal payment channels, ensure better tax compliance, and improve oversight of foreign currency outflows related to education.
Banks are required to maintain proper documentation and submit regular reports to the central bank.
