Bangladesh Bank has raised the limit of funds to be sent abroad for medical treatment expenses from US$ $10,000 to $15,000.

The foreign exchange policy department of the central,bank on Monday, through a circular confirmed this. The new directive allows individuals to send up to $15,000 for this purpose without prior approval from the central bank.

Previously, banks were authorised to remit a maximum of $10,000 for medical expenses without special permission. This limit has now been raised by an additional $5,000.

According to the Bangladesh Bank's notification, up to $15,000 in foreign currency can be released in the name of the hospital or through international cards. Within this limit, customers can also withdraw up to $5,000 in cash.

Bangladesh Bank to release newly designed banknotes ahead of Eid

Sources indicated that due to visa complexities with India, many individuals seeking advanced medical treatment are now opting for alternative destinations such as Thailand, China, Singapore, the United Kingdom, and the United States. The cost of travel and treatment expenditures in these countries tends to be higher, considering that the central bank has relaxed dollar spending.

The central bank clarified that for medical expenses exceeding $15,000, the remitting bank will need to seek special authorisation from the Bangladesh Bank.

Bangladesh Bank stated that simplifying the process for legitimate medical expense transfers aims to discourage individuals from resorting to illegal channels like hundi, which can negatively impact inward remittances.

This move follows a decision earlier this month by the Bangladesh Bank to ease regulations for sending funds abroad for various purposes, including education.

Bangladesh Bank urges best practices in LC payments

Banks can now utilise international card platforms to facilitate payments for membership fees, IT-related expenses, overseas education costs, visa fees, foreign training registration fees, and medical expenses.