IGWs allowed to open FC accounts

Staff Correspondent | Published: 00:00, May 10,2019


Bangladesh Bank on Thursday allowed the authorised dealers of banks to open foreign currency accounts in the name of international gateway service providers.
The central bank gave the permission to facilitate IGW operators’ inward remittances generated from termination of international voice calls.
The ADs, however, will have to fulfil four conditions in operating FC accounts of IGW operators.
BB said that only the foreign currency received against incoming international calls could be credited to the account.
Besides, the ADs will have to deduct VAT and other taxes applicable on the foreign currency and deposit the amount in the government treasury.
As per the statistics of Bangladesh Telecommunication Regulatory Commission, the volume of incoming international calls in Bangladesh was around four crore minutes per day in June last year. The figure was 6.92 crore per day in the fiscal year of 2016-2017.
The calls enter inside the country through IGW operators and then the operators transfer the calls to telecom operators concerned.
The banks’ authorised dealers have also been allowed to clear payments of international carriers for outgoing international calls, said BB circular, adding that the remaining balance in the FC accounts would be allowed to encash in local currency by the accountholders without any hassle.
At present, 24 IGW operators are operating in the country and bringing remittances as charges for their services. The process involves foreign transactions. The IGW operators are allowed to charge 1.75 US cents to 2.5 US cents against termination of a minute incoming international call.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email