Bangladesh Bank has permitted authorised dealer (AD) banks to issue international debit, prepaid and credit cards for students and their sponsors to make education-related payments to institutions abroad.

The facility will allow Bangladeshi students to pay tuition fees and other approved education expenses overseas using international cards, according to a circular issued by the central bank on Monday (10 August).

The cards may be issued in the name of the student or the person financing the student’s education. They can be used to make payments to foreign educational institutions for tuition and other eligible expenses.

The decision comes as universities and admission platforms in different countries increasingly require students to make tuition, admission and other education-related payments through international cards.

Bangladesh Bank said transactions made under the new facility will be treated separately from regular travel-related foreign exchange transactions. As a result, such payments will not be deducted from an individual’s existing travel quota or other foreign exchange entitlements.

AD banks, however, must complete all regulatory requirements before issuing the cards. They must also ensure that the cards are used only for approved education-related payments and within the specified validity period.

Banks have been instructed to maintain proper records of all transactions carried out under the facility and report them to Bangladesh Bank using the prescribed purpose codes.

The new arrangement is expected to simplify the process of paying overseas education expenses while providing banks with a regulated channel for handling such foreign exchange transactions.