Bangladesh Bank has allowed banks to transfer of funds abroad for visa bonds and refundable security deposits required by foreign embassies, high commissions, and authorities during visa processing, easing a longstanding difficulty faced by many Bangladeshi visa applicants.

In a circular issued on Monday, the central bank said banks would now be able to remit foreign currency on behalf of applicants if a visa bond or refundable security deposit is mandatory for obtaining a visa.

BB officials said that the new policy will simplify visa processing for Bangladeshi applicants, particularly for countries such as the United States of America that require financial guarantees as part of visa procedures.

Under the new directive, banks can also issue international or virtual cards in the name of applicants, preloaded with the required bond or deposit amount.

Existing international cardholders will be allowed to reload the amount under their travel entitlement, provided the money is used only for visa-related purposes.

The circular said that any refunded bond or security deposit must be brought back to Bangladesh immediately after release by the concerned embassy, high commission or foreign authority.

Bangladesh Bank directed banks to maintain separate registers for such transactions and actively monitor refund status to ensure timely repatriation of funds.

Before processing remittances or issuing cards, banks have been instructed to verify applicants’ valid passports and official demand letters, invoices or other documents issued by embassies or competent authorities.

These documents must clearly mention the amount, currency and refund conditions of the required bond or security deposit.

The facility will be available through Exporters’ Retention Quota accounts, Resident Foreign Currency Deposit accounts and international cards issued against such accounts.

The central bank also instructed banks to ensure compliance with applicable taxes and other foreign exchange rules while processing the transactions.

The move is expected to benefit Bangladeshi students, workers and travellers applying for visas in countries where applicants are required to maintain refundable deposits or financial guarantees as part of immigration procedures.