The Bangladesh Bank has issued a new directive permitting authorised dealer banks to facilitate the remittance of visa bonds and refundable security deposits. This measure is specifically designed to assist Bangladeshi citizens who require such financial guarantees as part of the formal visa application process mandated by foreign embassies, high commissions, and other competent international authorities.
Regulatory Shift and Implementation
According to a circular released by the central bank on 11 May 2026, commercial banks are now authorised to remit funds on behalf of individual applicants in instances where a security deposit or bond is a mandatory prerequisite for visa issuance. This policy aims to streamline the administrative hurdles frequently encountered by travellers and students heading abroad.
A senior official from the Bangladesh Bank clarified that the move addresses a long-standing complication in the national foreign exchange framework. Many developed nations, notably the United States, often require financial guarantees to ensure that visitors adhere to their visa conditions and return to their home country upon the expiry of their authorised stay. Previously, the mechanisms for transferring these specific types of deposits were complex and lacked a direct regulatory pathway.
Available Remittance Methods
The central bank has outlined several specific channels through which these funds may be processed to ensure transparency and compliance:
Direct Remittance: Banks may transfer the required bond amount directly to the embassy or relevant authority.
International Cards: Authorised dealers may issue new international or virtual cards preloaded with the necessary security deposit.
Existing Card Facilities: Applicants who already possess international cards under travel entitlement quotas may have their limits adjusted or cards reloaded for this specific purpose.
Foreign Currency Accounts: Transfers can be facilitated using balances held in Resident Foreign Currency Deposit (RFCD) accounts or Exporters’ Retention Quota (ERQ) accounts.
Summary of New Provisions
| Feature | Details |
| Effective Date | 11 May 2026 |
| Primary Beneficiaries | Individual visa applicants (travellers, students, professionals) |
| Eligible Destinations | Countries requiring bonds (e.g., USA, select European nations) |
| Permitted Account Types | ERQ accounts, RFCD accounts, and standard TQ cards |
| Payment Format | Bank transfers, virtual cards, or physical international cards |
Impact on the Financial Sector
Industry insiders and banking professionals have welcomed the decision, noting that it brings the Bangladeshi banking system closer to international standards. By formalising the process for security deposits, the central bank reduces the reliance on informal channels and ensures that all foreign exchange outflows are properly documented under existing regulations.
The directive stipulates that these funds must be used exclusively for visa-related requirements. If a security deposit is refunded by a foreign mission, the proceeds must be repatriated to Bangladesh in accordance with the country’s foreign exchange control laws. This ensures that while the process is simplified for the citizen, the national reserves remain protected.