BB allows opening deposit accounts for NRBs

Bangladesh Bank (BB) has asked scheduled banks to open deposit accounts for non-resident Bangladeshis (NRBs) to encourage them, who are working abroad, in saving their hard-earned money in Bangladesh.

“The deposit accounts in the name of NRBs may be opened in the form of savings for a period of one year and above. The accounts may also be opened without initial installment for the persons proceeding abroad for employment,” as per a BB circular issued today.

Besides, the deposit accounts will be credited in the local currency –Bangladesh Taka (BDT) – after conversion of foreign currency properly, it added.

According to the circular, remittance sent from abroad through banking channels or exchange houses can be deposited in the savings scheme by cashing in foreign currency brought with the expatriates on arrival in Bangladesh and by cashing the foreign exchange account managed in the name of the expatriates. The account can be opened without any deposit before going abroad.

 Banks will be able to pay interest at competitive rates in these savings schemes. At the same time, it has been asked to provide special assistance in interest considering the accounts conducted through foreign currency cashing. After the expiry of the term of the savings scheme, the expatriate can pay the nominee of the account holder the money deposited in the bank scheme with interest. However, in the alternative system, the status of the savings scheme will allow the expatriate to open a new permanent deposit account in his name. The account holder will be able to receive the status of the account on a one-time or pension basis on monthly or quarterly basis after the expatriate has left the country permanently. If the account holder returns to the country during the savings scheme and the income from the local source, the scheme can be managed as a resident account.

Besides, it has been mentioned in the circular that Bangladesh Bank will consider the issue of sending the required money abroad on submission of application if money is required for suitable reasons while staying abroad.

Currently there are three types of savings bonds for expatriates. These only have the opportunity to invest in foreign currency. The new guidelines now provide opportunities to invest in local currency.