Bangladesh Bank permits remittance of ‘visa bonds’ and security deposits abroad

In a significant move to ease international travel for Bangladeshis, Bangladesh Bank (BB) has allowed the remittance of mandatory visa bonds and refundable security deposits required by foreign embassies, high commissions, and other visa authorities.

The central bank issued a circular on Sunday, instructing Authorised Dealer (AD) banks to facilitate such payments on behalf of visa applicants.

According to the new directive, banks are now permitted to issue international or virtual cards in the name of the applicant, specifically for this purpose. These cards can be pre-loaded with the necessary bond or security deposit amount.

Furthermore, existing international cardholders can reload their cards under their travel quota to cover these specific costs. However, the central bank emphasised that these funds must exclusively be used for visa-related financial requirements.

A key clause in the circular mandates the swift repatriation of these funds once the relevant embassy or authority refunds the bond or security deposit.

 “Banks are required to maintain separate registries to track these transactions. They must regularly monitor and report the progress of fund returns to the central bank,” stated in the circular.

Before remitting any funds, banks must verify several essential documents, including a valid passport of the applicant, a formal requirement letter or invoice from the embassy or relevant authority, and references or acknowledgement letters related to the visa application.

The central bank clarified that these transactions can be processed through Exporter’s Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, or international cards issued against such accounts.

Industry insiders believe this decision will remove a major bottleneck for Bangladeshi travellers, students, and professionals applying to countries that require financial guarantees as a prerequisite for visa approval, making the overall process more transparent and accessible.