Bangladesh Bank (BB) has directed the commercial banks to allow the local software developer companies to remit the maximum of $30,000 in a calendar year from the previous ceiling of $25,000.
In a letter sent to the top executives of the banks at the end of March, the central bank clarified that the ICT and software firms, who are members of Bangladesh Association of Software and Information Services (BASIS), will be allowed to remit abroad $30,000 in a calendar year from the previous ceiling of $25,000 to meet their business needs.
Individual software developers and freelancers will be allowed to get virtual cards for maximum $300 in a calendar year, said the letter.
The letter signed by Deputy Manager Md. Abdul Mannan also outlined the categories of the ICT businesses eligible for the facility.These include the firms that export above $10,000 in Information Technology Enabled Services (IT Enabled Services) and Business Process Outsourcing (BPO) services, Computer and Information Technology consultancy and management services and relevant firms that might fall under an unspecified category of exporters.
Within the limit of $30,000, the ICT and software firms will be allowed to refill $6,000 at a time from the earlier limit of $2,500.
BASIS President Mustafa Jabbar told daily sun, “The rise in the limit of outbound fund transfer is really a good approach for the development of the ITES sector.”
The IT expert also observed that the directive of the central bank is very synchronising with the government’s export target of $1 billion from ITES domain by 2018 and $5 billion by 2021.
The facility is not linked with the export retention quota (ERQ) of the ICT business people and it is remittable through wire transfer or international credit card within the limit.
The BB issued a total four circulars directing banks to relax the foreign exchange rules for the ICT sector so that the inward remittance will increase through the sector in the days to come.
The exporters of the ICT sector will also be allowed to keep their 70 percent export earnings with their ERQ accounts.
Both members and non-members of BASIS will enjoy the facility.
The exporters of the ICT sector were earlier allowed to keep 60 percent of their export earnings with their ERQ accounts.
The individual software developers and freelancers will be allowed to keep the money with their debit, prepaid or credit card.
The central bank issued a separate form-C for the exporters of ICT sector to boost their business.