Outward Remittance Rules in Bangladesh 2026: Permitted Heads, Approvals, Accounts and Offshore Banking

Outward remittance Bangladesh rules: the 2026 framework

Outward remittance Bangladesh law permits is a closed list, not an open door. Every payment from Bangladesh to a person abroad is prohibited by the Foreign Exchange Regulation Act 1947 unless Bangladesh Bank has allowed it, and the permissions now sit in a single consolidated circular issued on 30 September 2026.[1] [3] Whether a company can pay a foreign consultant, a parent can fund a child's tuition in London or a patient can pay a hospital in Chennai depends on finding the right head in that circular and documenting it properly.

This guide explains the permitted heads for sending money out and the approvals each needs, then the other half of the cycle: how money comes in, which foreign currency accounts can hold it, how a company opens its bank account and brings in capital, and what offshore banking units offer under the Offshore Banking Act 2024. Where TRW has covered a topic in depth, we link to it rather than repeat it.

Summary: Outward remittance from Bangladesh is permitted only under a specific head. For most current account payments (imports, services, travel, study, medical treatment, dividends and approved loan repayments) authorised dealer banks can approve the payment themselves on Form TM, within indicative limits set by FEPD-1 Circular No. 40 of 30 September 2026. Anything outside those heads, or above the limits, needs Bangladesh Bank approval obtained through the bank.

Key point: The limits in Circular No. 40 are indicative, not absolute. Bangladesh Bank says it will accommodate bona fide requests above them, and current payments the circular does not mention, once the genuineness of the expense is established. The real constraint is documentation, not the number.[3]

At a glance

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Table of Contents

How outward remittance Bangladesh law is structured in 2026

The legal starting point is section 5(1) of the Foreign Exchange Regulation Act 1947. Unless Bangladesh Bank exempts it, a person resident in Bangladesh may not make any payment to, or for the credit of, a person resident outside Bangladesh.[1] A contract, an invoice or a court judgment does not lift that prohibition. Only a general or specific permission does, and almost all general permissions are now found in Bangladesh Bank's consolidated circulars.

The penalty for getting it wrong is criminal. Section 23(1) makes a contravention punishable with imprisonment of up to seven years, a fine, or both; the Foreign Exchange Regulation (Amendment) Act 2015 raised the maximum from four years.[1] In practice problems surface earlier, as a refused payment or a demand to repatriate an excess. Our overview of foreign exchange regulations in Bangladesh explains the wider statutory scheme.

The Guidelines and the consolidated circulars

The Guidelines for Foreign Exchange Transactions 2018 (GFET) remain the base text, with transaction rules in Volume 1 and reporting rules in Volume 2.[2] Bangladesh Bank is replacing Volume 1 with one-year consolidated circulars. For outward remittance the key instrument is FEPD-1 Circular No. 40 of 30 September 2026, issued under section 20(3) of the Act, which updates FE Circular No. 37 of 2025 and repeals earlier instructions except the Volume 2 reporting rules.[3]

Three companion circulars complete the picture: Circular No. 30 of 13 August 2026 on imports, Circular No. 32 of 2 September 2026 on loans, guarantees and external borrowing, and Circular No. 26 of 30 July 2026 on exports, retention quota accounts and freelancers.[4] [5] [6] Each stays valid for one year and must be read with circulars issued during that year.

What counts as an outward remittance

Circular No. 40 defines the term broadly: any remittance from Bangladesh to a foreign country, and any Taka credit to a foreign bank's non-resident Taka account or to a convertible Taka account.[3] Crediting a foreign employee's or foreign shareholder's foreign currency account in Bangladesh also goes through Form TM. If value moves from resident to non-resident, the rules apply.

Form TM, authorised dealers and Bangladesh Bank approval

Since the Taka became convertible for current account payments in March 1994, authorised dealer banks have had general authority to approve most outward current account remittances, either in full or up to a set limit.[3] The bank is therefore both gatekeeper and first decision-maker.

The application and reporting cycle

Every non-import purchase of foreign exchange starts with Form TM. If the bank has authority it sells the foreign exchange; if not, it forwards the application to Bangladesh Bank. The transaction is posted to the Online TM Monitoring System, which generates a TM ID, and banks report tax and VAT paid by the 25th day of the following month.[3] Banks keep Form TM and its papers for at least five years, and remitters should keep the same file.[3]

When Bangladesh Bank must approve

Customers cannot apply to Bangladesh Bank directly. Applications go through the authorised dealer, which attests the papers and adds its own recommendation. An approval is valid for no more than 45 days unless it states a longer period or is revalidated, and the bank may act only for the original applicant.[3] Approvals for recurring payments must be used strictly within the authorised amounts and intervals.

The indicative-limit principle matters here. Circular No. 40 states that its limits are indicative and that bona fide requests above them, and current account payments it does not specifically cover, will be accommodated by Bangladesh Bank once the genuineness of the expense is established.[3] A well-documented file therefore usually succeeds; a thin one fails at the bank.

Imports and trade payments

Imports are the largest category of outward payment, but they sit outside Circular No. 40. Circular No. 30 grants authorised dealers general authorisation to remit against admissible import transactions, provided the import complies with the Import Policy Order, the importer is registered under the Importers, Exporters and Indentors (Registration) Order 2023, and the import is reported to Bangladesh Bank's Online Import Monitoring System.[4]

Clean, revolving and standby letters of credit need Bangladesh Bank permission except for companies in export processing zones, economic zones and hi-tech parks.[4] Advance payments, deferred terms and the bill of entry rules are covered in our guide to foreign exchange regulations in Bangladesh, and the choice of payment method in our note on LC versus TT payments.

Services, royalties and technical fees

Service payments are where outward remittance Bangladesh practice most often goes wrong, because the right head depends on who is paying, what is being bought and from whom. Circular No. 40 sets out several distinct facilities, and they are generally mutually exclusive: a payment made under one cannot be topped up under another.[3]

Training, consultancy and professional fees

Industrial enterprises producing for the local market and service sector businesses may remit, through their nominated bank and without Bangladesh Bank approval, up to 1 per cent of annual sales declared in the previous year's tax return or USD 100,000, whichever is higher, for training and consultancy under a contract with the foreign provider.[3] It extends to audit, certification, testing and valuation fees, but is not available to banks and other financial institutions.

Payments by subsidiaries to their foreign group

A subsidiary more than 50 per cent owned by a foreign group may pay for recurrent group services without prior approval if the services are not available locally, the price is competitive and the gross amount does not exceed 10 per cent of the year's net profit.[3] Tax, VAT and transfer pricing rules apply, and larger amounts need Bangladesh Bank approval on evidence of price and necessity.

Royalties, technical know-how and franchise fees

Royalty-type payments follow a separate track. Section 27 of the Invest Bangladesh Act 2026 requires approved industrial enterprises to apply to the Invest Bangladesh Authority for royalty, technical knowledge, technical assistance and franchise fee payments to foreign persons.[3] The Authority's guidelines of 3 March 2021, issued as BIDA, list amounts banks may remit without its approval; above them approval is required, through one nominated bank branch. Our analysis of the Invest Bangladesh Act 2026 explains the Authority.

Enterprises in the Authority's export processing areas and in hi-tech parks may remit royalty, know-how and technical assistance fees from their foreign currency accounts without prior permission if total fees do not exceed 6 per cent of the cost of imported machinery for a new project, or 6 per cent of the previous year's declared sales for an ongoing concern.[3]

Facilities for IT firms, e-commerce businesses and SMEs

Smaller businesses have annual allowances for routine overseas costs: USD 40,000 for BASIS-recommended IT and software firms (registration, hosting, servers and digital marketing), USD 10,000 for members of the e-Commerce Association of Bangladesh and USD 3,000 for SMEs registered with the SME Foundation, partly usable through international cards.[3] None covers royalty or franchise fees.

Outward remittance Bangladesh personal heads: travel, study, medical and family

For individuals the rules are set as annual or per-purpose entitlements, recorded on the passport so that the next bank can see what has been used.

Travel quotas

Since FEPD-1 Circular No. 33 of 6 September 2026, an adult resident may receive up to USD 18,000 a calendar year for travel abroad, of which up to USD 5,000 may be in US dollar notes; children under 12 receive half. The release, applied for on Form TM, is endorsed on the passport, and above USD 200 a visa is generally required unless the destination offers visa on arrival. A departing passenger may also carry Tk 10,000 in cash.[3] Residents leaving on a one-way ticket for work, migration or study may take the whole unused entitlement.

Exporters, importers and producers for the local market have a separate business travel quota of USD 400 a day, capped at USD 4,000 a trip and USD 10,000 a year. Seminar and training participants can receive USD 400 a day for the programme plus one day.[3]

Education abroad

Authorised dealer banks may release foreign exchange for undergraduate, postgraduate, language and professional courses at recognised institutions abroad on the basis of the admission letter and the institution's estimate of tuition, board and lodging, such as an I-20. School-level study abroad needs prior Bangladesh Bank approval.[3] Releases are made one academic year at a time through one bank branch, refundable blocked-account deposits for visas are allowed, and a designated education card introduced by FEPD-1 Circular No. 29 of 10 August 2026 sits outside the travel quota.[3]

Medical treatment abroad

Up to USD 15,000 may be released by the authorised dealer for treatment abroad on the recommendation of a medical board set up by the Health Directorate, or of appropriate specialists, together with the foreign hospital's cost estimate. Larger amounts are forwarded to Bangladesh Bank, which authorises them once the expense is verified. The ceiling is relaxed for people injured in the July 2024 uprising, for whom banks may release funds on estimate.[3]

Family maintenance and foreign employees

Supporting dependent parents, a spouse or children living abroad needs prior Bangladesh Bank approval, backed by a Bangladesh embassy certificate on the family's circumstances.[3] Foreign nationals working in Bangladesh may remit up to 80 per cent of net income after tax during the year, and the remaining 20 per cent after the year's tax assessment. On permanent departure they may transfer genuine savings and contractual retirement benefits.[3]

Dividends, profits and loan repayments

Returns on investment fall under Circular No. 40 and loan principal under Circular No. 32. In both, outward remittance Bangladesh banks will process depends on a properly recorded inflow and paid tax.

Dividends and branch profits

Banks may remit final and interim dividends to non-resident shareholders without prior Bangladesh Bank approval, on an auditor-certified application with audited accounts, the board resolution and tax certificates, through one nominated bank notified in advance to the Foreign Exchange Investment Department.[3] Branch profits follow a similar route, and dividends can instead be credited to a foreign currency account in Bangladesh or reinvested. The full exit sequence is covered in our guide to capital repatriation in Bangladesh.

Foreign loan repayments

Borrowing abroad by private sector industrial enterprises, including supplier's credit and debt issues, needs prior authorisation from the Invest Bangladesh Authority. Once a loan is approved, interest, principal and charges may be remitted without prior reference to Bangladesh Bank, but only by the authorised dealer through which the loan was originally received and after applicable tax is deducted.[5] Changing banks mid-loan is a common cause of blocked repayments.

Inward remittance in Bangladesh: what changed in 2026

Inward remittance is the other side of the same regime. Our guide to receiving foreign currency in Bangladesh sets out the channels and documents; this section focuses on the 2026 changes that affect how and when money is credited.

Wage earners and the 2.5 per cent incentive

Wage earners' remittances remain the largest source of foreign exchange. In March 2026 expatriates sent a record USD 3.75 billion through official channels, and in the FY2026-27 budget the Finance Minister, Amir Khosru Mahmud Chowdhury, kept the 2.5 per cent cash incentive for remittances sent through legal channels.[13] Recruitment costs and workers' welfare are covered in our guide to migrant worker rights in Bangladesh.

Form C replaced by digital capture

FEPD-1 Circular No. 03 of 8 January 2026, now part of the export circular, changed how banks dispose of inward remittances. Remittances received in banking hours must be credited the same business day and later ones the next, even if some documents are pending.[7] [6] Where pre-credit checks are needed, settlement should take no more than three business days. Purpose details given through secure digital interfaces are accepted on the customer's declaration, and Form C and Form C (ICT) are discontinued.[6]

Export proceeds and freelancers

Export proceeds still follow the four-month repatriation rule, explained in our foreign exchange regulations guide. For freelancers, whose inward remittances are service export proceeds, Part K of Circular No. 26 lets banks credit payments on electronic evidence such as platform statements, accept up to USD 10,000 per transaction through online payment gateways, and retain 50 per cent of net ICT earnings, or 30 per cent for other services, in retention quota accounts. Holding export proceeds abroad, including in virtual assets, outside permitted platform accounts breaches the Act.[6] Tax is covered in our guide to freelancer tax in Bangladesh.

Foreign currency account rules in Bangladesh

The general rule is that foreign exchange acquired by a resident must be sold to a bank within one month, under a 1958 notification issued under section 9 of the Act. Foreign currency accounts are the main exceptions, and each type has its own permitted credits and debits.[2]

Private FC accounts and NFCD accounts

Banks may open private foreign currency accounts without prior approval for Bangladeshis residing abroad, foreign nationals, foreign firms registered abroad and foreign missions. Earnings from business or services in Bangladesh cannot be credited, but payments abroad and local disbursements are free.[2] Non-resident Bangladeshis may also hold Non-Resident Foreign Currency Deposit (NFCD) accounts: term deposits of one to twelve months opened with at least USD 1,000, or USD 25,000 for foreign nationals, foreign companies and fully foreign-owned zone enterprises. Principal and interest are freely repatriable.[2]

RFCD accounts for residents

Residents may open Resident Foreign Currency Deposit (RFCD) accounts with foreign exchange they bring back from travel abroad, provided it is not export proceeds or commission on a Bangladeshi deal. Balances are freely transferable abroad and usable for travel.[2] Under Circular No. 40, returning residents may keep up to USD 10,000 in hand, and larger amounts declared on the FMJ form may be encashed or retained in an RFCD account.[3]

ERQ and zone accounts for exporters

Outward remittance Bangladesh exporters make for business costs often comes from Exporters' Retention Quota (ERQ) accounts: 30 per cent of repatriated FOB value for high value-added goods, 15 per cent for high import-content goods such as garments from imported woven fabric, 50 per cent of net ICT service earnings, 30 per cent for other services and 10 per cent of agents' commission. Balances may be used without approval for business travel, trade fairs, offices abroad, imports and authorised loan repayments.[6]

Enterprises in specialised zones are treated differently. Fully foreign-owned Type A enterprises may keep 100 per cent of repatriated export proceeds in foreign currency accounts with banks or offshore banking units; Type B and Type C enterprises may keep up to 80 per cent, or 75 per cent in garments. Foreign equity and authorised foreign loans can be credited to these accounts directly.[6]

NRCTA for non-resident Bangladeshis

FEPD-1 Circular No. 41 of 8 October 2026 broadened the Non-Resident Convertible Taka Account (NRCTA). Non-resident Bangladeshis may hold savings, current or fixed deposit NRCTAs with banks or offshore banking units, funded by inward remittances, and departing workers can open one without initial deposit. Balances earn market-rate Taka interest, are freely repatriable and can fund investment, but remittance incentives generally do not apply and income from business or services in Bangladesh cannot be credited.[8]

Opening a company bank account in Bangladesh

Every outward remittance Bangladesh companies make, and every receipt, runs through a corporate bank account. The account-opening file is therefore the first compliance document a new company produces.

Documents banks ask for

A typical checklist for a private limited company comprises the account opening form; RJSC-certified copies of the memorandum and articles of association, certificate of incorporation, Form X and Form XII; the trade licence, a recent utility bill, the e-TIN certificate and VAT registration where applicable; an original board resolution on letterhead authorising the account and its signatories; photographs and identity documents for each signatory and director; and proof of tax return submission where applicable.[14] Registration itself is covered in our guide to company registration in Bangladesh.

KYC and beneficial ownership

Under the Bangladesh Financial Intelligence Unit's beneficial owner guidelines, issued under the Money Laundering Prevention Act 2012, a bank must identify every natural person owning 20 per cent or more of the company, directly or indirectly, and anyone with effective control. Corporate shareholders are traced layer by layer to individuals, and higher-risk customers may be asked for source of funds.[12] Group structure charts and certified registers of the foreign parent save time.

Foreign shareholders, directors and signatories

Foreign directors and shareholders are identified by passport rather than national ID. Expect banks to want documents executed abroad properly certified, and an expatriate signatory based in Bangladesh to show a valid visa and work permit. Plan for at least one signatory who can attend the branch. Branch and liaison offices follow separate approval rules, discussed in our guide to foreign company registration in Bangladesh.

Bringing in share capital

Before incorporation, a bank may open a temporary non-resident Taka account in the proposed company's name, credited only with remittances from abroad. After registration the balance moves to the permanent account; if the project is abandoned, the balance less expenses may be repatriated without approval.[2] Shares may be issued to non-residents without Bangladesh Bank permission against foreign exchange brought in through banks, normally encashed into Taka, or against imported machinery. The bank issues an encashment certificate and the issue is reported to the Foreign Exchange Investment Department within 14 days.[2] That certificate later supports dividend and exit remittances.

Offshore banking in Bangladesh under the Offshore Banking Act 2024

Offshore banking units (OBUs) are separate units of Bangladeshi scheduled banks that deal in foreign currency with non-residents and foreign-owned zone enterprises, outside the domestic Taka balance sheet. They operated for years under central bank guidelines before Parliament passed the Offshore Banking Act 2024 on 5 March 2024, the first statute on the subject.[10]

What the Act provides

The Offshore Banking Act 2024 is Act No. 02 of 2024. Only a scheduled bank operating in Bangladesh, licensed by Bangladesh Bank, may carry on offshore banking business, and OBU approvals granted before the Act are treated as licences.[9] Transactions may be made in the US dollar, pound sterling, euro, yen and yuan, and as reported at enactment, interest and profit on offshore accounts of depositors and foreign lenders carry no income tax or other charges.[10]

What offshore banking units can do

Bangladesh Bank's guidelines of 30 January 2025 set the operating framework. OBUs may accept deposits from fully foreign-owned enterprises in specialised zones and from non-residents, including non-resident Bangladeshis, foreign nationals, foreign companies and institutional investors, and may provide trade finance, capital machinery finance for up to three years and international cards.[9] No cash reserve ratio applies, but offshore assets must be at least 75 per cent of offshore liabilities, and borrowing from the domestic unit is capped at 30 per cent of regulatory capital.[9]

The 2025 and 2026 expansion

Bangladesh Bank has widened the regime in steps. FE Circular No. 27 of 3 July 2025 let domestic units use non-residents' OBU deposits as collateral for short-term working capital loans to residents, and a circular issued in early September 2026 extended that collateral to short-term and consumer finance for residents and non-resident Bangladeshis.[11] Since October 2026 NRCTAs may also be kept with OBUs, which may lend those funds in Taka to Type A zone enterprises for wages and other current costs.[8]

An OBU account is a regulated Bangladeshi banking relationship, not a route for residents to hold money outside the regime; a company abroad raises separate questions, covered in our guide to offshore company formation.

Outward remittance Bangladesh heads compared

The table summarises the main heads, who approves them and the limits in force in October 2026. On a phone, scroll it sideways.

Step by step: making an outward remittance from Bangladesh

Most refused remittances fail on preparation, not law. This is the sequence TRW uses before a client commits to a foreign payment.

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Common mistakes to avoid

• Signing first, checking later. A foreign contract creates a debt, not a right to remit. Identify the head in Circular No. 40 before signing.
• Using the wrong facility. Group services, consultancy and royalties have separate, mutually exclusive tracks. A royalty disguised as a service fee will be refused.
• Changing banks mid-stream. Dividends, loan repayments, royalties and study payments are tied to one nominated bank or branch.
• Ignoring tax and VAT. Source tax and VAT on the remittance are reported with it, so unpaid tax stops the payment.
• Losing the entry record. Without the encashment certificate and 14-day report, capital and dividends are hard to send home.

What to watch in 2026 and 2027

First, Circular No. 40 lapses one year after issue, in late September 2027, and each annual cycle has changed limits.[3] Second, the move from Form C to digital purpose capture will test how consistently banks apply pre-credit checks.[6] Third, the Invest Bangladesh Authority's role in royalty approvals and foreign borrowing is still bedding in.[3] [5] Anyone planning a recurring outward remittance Bangladesh banks must approve should diary the circular dates. TRW's banking and finance practice and foreign company establishment team advise on structuring, Bangladesh Bank applications and blocked payments.

Frequently asked questions

Which law governs outward remittance from Bangladesh?

Section 5 of the Foreign Exchange Regulation Act 1947, which prohibits payments to non-residents unless permitted, together with the permissions in Bangladesh Bank's consolidated circulars, principally FEPD-1 Circular No. 40 of 30 September 2026.[1] [3]

What is Form TM?

The application form for buying foreign exchange for any payment other than imports. It is filed with the authorised dealer bank and reported to Bangladesh Bank's online TM monitoring system.[3]

How long is a Bangladesh Bank remittance approval valid?

No more than 45 days from approval, unless the approval states a longer period or is revalidated.[3]

How much foreign exchange can I take for travel in 2026?

Up to USD 18,000 per calendar year for an adult resident, with no more than USD 5,000 in US dollar notes. Children under 12 receive half.[3]

How much can be sent abroad for medical treatment?

Banks may release up to USD 15,000 on a medical board or specialist recommendation and the foreign hospital's estimate. Bangladesh Bank can authorise more once the expense is verified.[3]

Can a Bangladeshi subsidiary pay its foreign parent for services?

Yes, without prior approval, if it is more than 50 per cent foreign-owned, the services are not locally available, the price is competitive and gross payments stay within 10 per cent of annual net profit.[3]

Is Form C still required for inward remittances?

No. Under the January 2026 rules, now in the export circular, banks capture purpose information through digital channels and Form C and Form C (ICT) are discontinued.[6] [7]

What is the difference between RFCD and NFCD accounts?

An RFCD account is for residents, funded with foreign exchange brought back from travel. An NFCD account is an interest-bearing term deposit for non-resident Bangladeshis and, with a higher minimum, foreign nationals and companies.[2]

Can a foreign investor open a bank account before the company is incorporated?

Yes. A temporary non-resident Taka account can be opened in the name of the proposed company, credited only with remittances from abroad, and transferred to the company's account after registration.[2]

Who can open an account with an offshore banking unit?

Persons resident outside Bangladesh, including non-resident Bangladeshis, foreign nationals and foreign companies, and fully foreign-owned enterprises in specialised zones, under the Offshore Banking Act 2024 and Bangladesh Bank's 2025 guidelines.[9]