The central bank has introduced a bank-intermediated framework for cross-border digital payments to modernise the payment ecosystem, enhance digital financial inclusion, and support growing trade in services.

Under the framework, authorised dealer (AD) banks are allowed to process outward remittances through partnerships with foreign payment platforms and service providers, termed Cross-Border Digital Payment Service Providers (CDPSPs), according to a notification issued by the Bangladesh Bank (BB) on Wednesday. 

A core feature of the framework is the introduction of Digital Value Accounts (DVAs) - digital wallets or stored-value accounts opened in the name of users. These accounts will operate under a Master DVA maintained by the respective bank, ensuring regulatory oversight.

DVAs may be used for travel-related foreign exchange - including private, medical, and official purposes - as well as for payments such as membership fees, IT services, visa fees, and hotel bookings. DVA users are allowed to make cross-border online payments up to a specified limit.

The facility may also be extended against balances held in Export Retention Quota (ERQ) and Resident Foreign Currency Deposit (RFCD) accounts.

Banks shall obtain prior regulatory acknowledgement from the central bank before launching such services, providing details of partnerships, system integration, and compliance arrangements.

The initiative signals a shift towards integrating digital payment channels into the regulated financial system. Previously, banks were permitted to use OPGSPs primarily for inward remittances.

Market observers believe the move could attract global payment platforms such as PayPal and Stripe to explore the Bangladesh market, particularly in freelancing, e-commerce, and cross-border service trade.

siddique.islam@gmail.com