BB asks banks to tap NRB deposits

FE REPORT | Monday, 10 August 2020

 The central bank has asked banks to introduce deposit products for non-resident Bangladeshis to encourage them to save their hard-earned money in Bangladesh.
The products will be in the form of savings for more than a year on a monthly or quarterly deposit basis, according to a notice issued by the Bangladesh Bank (BB), on Sunday.
Besides, the deposit accounts will be credited in the local currency -Bangladesh Taka (BDT)- after conversion from the foreign exchange, it added.
"This will help Bangladeshis living abroad to create their financial safety net in Bangladesh," a BB senior official told the FE while explaining the main objective of the idea.
NRBs will not face financial difficulties upon return to Bangladesh if they open such accounts, he added.
He said they will be able to open such accounts without instalment for the persons before they leave the country for overseas employment.
The banks are allowed to extend loans to non-resident account holders for meeting his personal needs in taka against the security of this deposit account subject to adherence to the usual lending norms, according to the notice.
In case of NRBs residing in Bangladesh permanently after their return, the proceeds can be made available to them either in one time settlement or pension type monthly/quarterly settlement.
NRBs can continue to maintain the deposits from local sources after their arrival.
The scheme has an option to repatriate payments abroad from the balance held in the deposits on maturity/before maturity for meeting subsistence needs with permission from the central bank.  
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