In a move aimed at attracting expatriate investment and boosting remittance utilisation, Bangladesh Bank (BB) has introduced a facility allowing non-resident Bangladeshis (NRBs) to open Non-Resident Taka Accounts (NRTAs) through Offshore Banking Units (OBUs).
The central bank issued a circular on Tuesday to the chief executives of all scheduled banks, outlining a series of changes to offshore banking operations.
The initiative is designed to expand offshore banking activities and channel remittance inflows into productive investments.
Under the new guidelines, NRBs can open NRTAs using foreign currency remitted through legitimate banking channels. The accounts may be maintained as savings, current, or fixed-term deposit accounts of any maturity.
According to the circular, funds that may be credited to these accounts include inward remittances, transfers from other non-resident accounts, interest or profit earned on deposits, and income, dividends, refunds, or proceeds from approved investments and capital market activities in Bangladesh.
A key feature of the accounts is full repatriability, allowing both the principal amount and accrued interest or profit to be transferred abroad at any time without restriction.
Account holders may also use the funds for a range of domestic investment and payment purposes. These include foreign direct investment (FDI), portfolio investment in the capital market, local payments, and conversion into other foreign-currency-denominated accounts.
The circular further allows funds held in NRTAs to be lent in local currency to Type-A industrial enterprises operating in economic zones managed by the Bangladesh Economic Zones Authority (BEZA) and Bangladesh Export Processing Zones Authority (BEPZA).
Such loans, however, can only be used for working capital needs, including salaries, wages and utility bills. Repayments must be made from the export proceeds of the borrowing enterprises.
The new rules also allow expatriates to use balances in their NRTAs as collateral to obtain loans from local banking units, either in their own names or in the names of nominated individuals. These loans may be used for personal or business purposes.
However, BB has barred the use of such borrowed funds for investments in agriculture, plantations and real estate.
Expatriates may, however, use their own account balances to purchase residential property in Bangladesh for personal use or make non-repatriable investments.
Bankers and business leaders say the initiative is expected to strengthen the financial intermediation of remittances, deepen offshore banking operations and provide expatriate Bangladeshis with a secure platform for investing in the country’s economy and capital market.
They also believe the measure will improve liquidity support for industries in economic zones while encouraging greater participation of NRBs in productive investment activities.
Bd-pratidin English/ ANI
