e-CAB members can now send $10,000 a year abroad, hassle free
e-CAB believes this will facilitate e-commerce and encourage new entrepreneurs
Members of the e-Commerce Association of Bangladesh (e-CAB) will be able to send $10,000 a year abroad to foreign companies such as Facebook and YouTube, without the approval of Bangladesh Bank.
The money can also be sent through banks and international credit or prepaid cards. By card, the maximum of $10,000 can be sent in five $2,000 installments.
In the case of remittance, authorised dealer banks have to comply with foreign exchange transaction regulations, value-added tax (VAT) deduction and deposit, and e-Cab recommendations.
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The central bank in a circular on Sunday said e-CAB members have been given the opportunity to send the logical expenses of their current accounts abroad.
This money can be sent through international credit or prepaid cards and banks.
However, the circular stipulates that remittances by card and under the conventional banking system may not exceed $10,000 under any circumstances.
Asked about this, Muhammad Abdul Wahed Tomal, general secretary of e-CAB, told The Business Standard that e-commerce companies have to spend much of their money on digital marketing, done mainly on Facebook and YouTube. In addition to the maintenance of the websites, they have to send fees for foreign consultancy.
He said earlier there were no separate instructions from the central bank on sending these fees. Then it had to be sent against the travel quota, which created various complications.
Now the convenience of sending up to $10,000 without precise directions and approval from the central bank has made business easier. He said the facility will encourage e-CAB members and draw the interest of new entrepreneurs.
Regarding the announced policy, a central bank official said the foreign transaction system is being updated in a timely manner and the remittance facility will ease e-commerce business activities.
According to e-CAB, the sector sees about Tk700 crore in transactions every month. In other words, transactions exceed Tk8,000 crore annually.
This business is growing even more in the ongoing lockdowns put in place to combat the coronavirus pandemic.
e-CAB, which started in 2015, has 700 members involved in e-commerce. It is working with the Bangladesh Post Office and the a2i programme of the Prime Minister's Office, to take e-commerce products and services to people across the country.
