Bangladesh Bank Expands Card Payments for Foreign Airline Tickets

DHAKA — Bangladesh Bank has expanded the scope of international card payments for air tickets purchased from foreign airlines, allowing eligible transactions to be settled through international acquiring and payment arrangements outside Bangladesh. The Foreign Exchange Policy Department-1 (FEPD-1) introduced the facility through Circular No. 39, expanding the framework established under FE Circular No. 47 issued on November 19, 2025.

Under the revised arrangement, foreign airlines operating in Bangladesh may accept international card payments for air tickets, provided the proceeds are settled through established international acquiring and payment settlement arrangements outside Bangladesh. The facility applies only to foreign airlines. Bangladeshi airlines will continue to follow existing local settlement and domestic acquiring arrangements for international ticket sales originating from Bangladesh.

A key provision of the new arrangement is that eligible air-ticket purchases will not be counted against an individual’s annual travel entitlement. In other words, such purchases will not be deducted from the standard annual foreign-exchange travel quota. Bangladesh Bank has also introduced a post-facto card replenishment mechanism for these transactions. Authorized Dealers (ADs) may replenish an international card after verifying the ticket purchase against the relevant card statement and confirming that the transaction falls within the eligible Merchant Category Codes (MCCs) specified by the central bank.

The foreign airlines covered by the facility are Air India, Cathay Pacific Airways, China Eastern Airlines, China Southern Airlines, Emirates, Flydubai, Gulf Air, Kuwait Airways, Malaysia Airlines, Oman Air, Qatar Airways, Saudi Arabian Airlines (Saudia), Singapore Airlines, SriLankan Airlines, Thai Airways International, Turkish Airlines and Air Arabia.

According to the circular, Authorized Dealers must report all ticket purchases made under the facility through Bangladesh Bank’s Transaction Monitoring (TM) module. The central bank also instructed ADs to continue applying the provisions of FE Circular No. 47 of 2025 that have not been specifically modified by the latest circular. These include applicable documentation, verification and compliance requirements.

Bangladesh Bank further clarified that foreign airlines receiving ticket proceeds through offshore settlement arrangements must include those proceeds when calculating their remittable surplus earnings. Amounts settled outside Bangladesh cannot subsequently be claimed again as part of the airlines’ regular profit remittances.

The necessary adjustment must be made in accordance with the audit requirements set out under Part-B of FEPD-1 Circular No. 08, issued on May 7, 2026. Bangladesh Bank has instructed Authorized Dealers to inform their customers and corporate constituents about the revised facility and ensure compliance with all applicable foreign-exchange regulations.