H-2 is about business process outsourcing: a non-resident hands some work to someone in Bangladesh, who does it and delivers it through the internet. H-2 says that besides firms and companies, individuals may also provide these services. That is where freelancers like Enzo come in.
Payment is normally due when the service is delivered, and there may be no documents to collect, unlike a shipment. So ADs are free to credit the service exporter's account in local currency (Taka), after keeping the allowed share in foreign currency in the exporter's ERQ account. The conditions are:
(a) Check the deal. From documents such as e-mail communication and the remittance message, the AD must be satisfied that the money came from the non-resident customer who received the service under a specific arrangement.
(b) Check the person. The AD must ensure that individual beneficiaries have the capacity to provide the service.
(c) Form-C. The AD encashes the remittance on receipt of an online Form-C (Appendix-11) filled electronically by the individual beneficiary. For ICT-related services, a separate Form-C (ICT) (Appendix-12) is used, so the purpose is coded easily and reported to Bangladesh Bank; ADs must follow the instructions written in the Form when reporting these. But: an inward remittance of up to USD 20,000 or equivalent against service exports may be credited without a Form-C. The AD then judges the transaction genuine from the remittance message and, if information is missing, e-mails the beneficiary to ask the purpose.
(d) Secure channel. ADs must have secured electronic channels for Form-C under internet banking, and act only after being satisfied with the electronic Form-C information received through those authenticated channels. After acting, the AD prints the Form-C and gets it signed within 30 days, unless it came automatically through a secure designated 'app'. The electronic Form-C data must be kept. If the beneficiary banks with a different AD, the receiving AD must transfer the money immediately through the 'FC Clearing BD-RTGS System'.
(e) Taxes: deduct applicable taxes, if any.
(f) Due diligence under foreign exchange rules, AML/CFT standards and other laws.
(g) Records must be kept and reported in the monthly schedules/statement to Bangladesh Bank.
H-2 doesn't state the ERQ share, a tax rate or what goes in the monthly statements. Note: Part L of the same circular (L-6, Lesson 33) says Form-C and Form-C (ICT) stand discontinued, and that until banks' secure digital interfaces are ready, the purpose and supporting information are collected through banks' existing digital channels. The original circular is always the final word.
Enzo receives USD 1,200 from a client in Australia for a logo, with a remittance message that says 'logo design fee'. Eliana sees that the amount is within USD 20,000, so she can credit it without a Form-C, after keeping the ERQ share in foreign currency and crediting the rest in Taka, less any applicable tax. Later a payment of USD 22,000 arrives for a full website design, with a blank message. As it is above USD 20,000, the no-Form-C route is closed, so she asks Enzo to fill in the online Form-C (ICT) through the bank's secure channel, which also records its purpose. Rozy says, "That little purpose code is how the country knows its designers earned this money. Good data starts at your desk."
Read the rule as written (Para H-2)
Besides firms/companies, individuals may also provide services outsourced by non-residents through internet. The payment against the services is normally due on delivery of the services and it may not necessarily require documents for collection of export proceeds. In this case, ADs are free to credit to the account of the relevant service exporter in equivalent local currency after retention of foreign currency in ERQ account maintained in the name of the exporter subject to observance of the following terms and conditions:
(a) ADs shall satisfy themselves on examination of the relevant documents (such as e-mail communication) and the message relating to the inward remittance that the payment has been received from the respective non-resident customers to whom services have been delivered in accordance with specific arrangements;
(b) ADs shall ensure that the individual beneficiaries have necessary capacities to provide the underlying services;
(c) ADs shall encash the inward remittance on receipt of online Form-C (as per Appendix-
11) duly filled through electronic means from the individual beneficiaries. To mention, separate Form-C (ICT) (as per Appendix-12) shall be used for reporting inward remittance on account of ICT related services for easy codification of the purpose and usual report to Bangladesh Bank in relevant statement/schedule and online reporting module. ADs are instructed to adhere to the instructions enumerated in the Form while reporting inward remittances on account of ICT related services. However, inward remittance up to USD 20,000 (Twenty thousand) or equivalent against service exports may be credited in the respective accounts of service exporters without obtaining declaration on Form-C. In this context, ADs shall satisfy themselves of the bonafide of the transactions based on the notation of the relevant message. In case of non-availability of required information, ADs shall contact the beneficiaries through e-mail about the purpose of transactions;
(d) ADs shall have secured electronic communication channels for Form-C under internet banking network, with customers. ADs shall execute transactions after being satisfied with the electronic information received through authenticated channels regarding Form-C. Afterwards, ADs shall take a printout of Form-C and get it signed by beneficiaries within 30 days for preservation. Signature will not be required if Form-C is received automatically through designated 'app' having appropriate security/protection measures. ADs shall, however, preserve information contained in electronic Form-C. In case of inward remittances received favoring beneficiaries maintaining accounts with different ADs, remittance receiving ADs are advised to transfer the same immediately to relevant ADs through 'FC Clearing BD-RTGS System';
(e) ADs shall ensure deduction of applicable taxes, if any;
(f) ADs shall exercise due diligence in respect of the transactions and comply with foreign exchange regulations, AML/CFT standards and other relevant laws/regulations in force; and
(g) ADs shall keep records in support of the transactions and report the same in relevant monthly schedules/statement to Bangladesh Bank.
Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part H, paragraph 2 (page 32). The original circular is the authority.