Circular No. 11 dated 19 September 2023 issued by the Foreign Exchange Policy Department of the Bangladesh Bank on “Inward Wage Remittances by Licensed Payment Service Providers”

To boost the inflow of remittances and allow for more flexibility, the Bangladesh Bank has granted permission to licensed payment service providers (“PSPs”) to facilitate the receipt of wage remittances from abroad in collaboration with globally-recognized online payment gateway service providers, banks, digital wallets, card networks, and foreign PSPs.

To implement this, PSPs will be required to establish standing arrangements with foreign PSPs to receive a wage earner’s foreign currency and then convert it into the equivalent value in Bangladeshi Taka and credit it to the wage earner’s PSP account, as outlined in further detail in the circular.

The Bangladesh Bank will begin a pilot phase of this initiative. PSPs interested in participating must apply to the Foreign Exchange Policy Department at the Bangladesh Bank head office by 31 December 2023 with details of the proposed arrangements.