The Bangladesh Bank has eased the payment of bills for foreign internet bandwidth services by no longer requiring central bank approval for each transaction.

Under new guidelines, banks can now directly remit payments to foreign providers, subject to specific conditions.

Previously, banks had to seek the central bank's approval before sending money abroad for internet bandwidth. The new circular issued on Sunday by the Foreign Exchange Policy Department of Bangladesh Bank allows banks to handle these transactions on their own, provided they verify all required documentation.

Banks are required to maintain all transaction-related documents and must present them for inspection by the Bangladesh Bank upon request. The new circular also emphasizes strict adherence to policies on anti-money laundering and combating the financing of terrorism.

In a related move, the central bank has also granted general approval for banks to issue performance bonds and guarantees on behalf of local exporters and subcontractors working with foreign contractors. This eliminates the need for separate authorization from the Bangladesh Bank for each guarantee.

An official from the Bangladesh Bank stated that this change would streamline operations and increase the flow of foreign currency. "Foreign contractors often have local suppliers and subcontractors who need guarantees. Now banks can directly issue these guarantees, which will accelerate work and boost foreign exchange," the official said.

Businesses have welcomed the new directives, stating that they will save time and simplify foreign transactions by removing the previous approval waiting period for bandwidth service payments.