BB launches convertible taka account for NRBs

Bangladesh Bank (BB) has introduced a Non-Resident Convertible Taka Account (NRCTA) facility for Non-Resident Bangladeshis (NRBs) as part of its efforts to boost remittance inflows and strengthen investment linkages.
The new facility is expected to allow the NRBs to hold freely repatriable taka deposits and invest more easily in the country.
Officials said the new account facility would also help accelerate offshore banking operations through the Offshore Banking Units (OBUs) of scheduled banks.
Under the new framework, NRBs will be able to open NRCTAs with OBUs in the form of savings, current or fixed-deposit accounts against inward remittances sent through formal banking channels, according to a Bangladesh Bank notification issued on Tuesday.
The accounts may also receive funds transferred from other NRCTAs, interest earnings, proceeds from permitted investments, refunds of share subscriptions and other approved foreign exchange-related inflows, the central bank said.
Both the principal amount and accrued interest in NRCTAs will be fully repatriable, according to the notification.
The central bank has also permitted a range of uses for the accounts, including legitimate local payments, transfers to other non-resident accounts, conversion into foreign-currency accounts, and investments in Bangladesh through foreign direct investment (FDI) and portfolio investment.
Bangladesh Bank officials said deposits mobilised under NRCTAs could be used by OBUs to provide Taka-denominated financing to Type A industrial enterprises operating in specialised economic zones.
Such financing may be utilised for admissible current expenditures, including wages, salaries and utility payments, with repayment required strictly from the export proceeds of the borrowing enterprises, they added.
The central bank has also allowed the Domestic Banking Units (DBUs) of account-maintaining OBUs to extend loans against NRCTA deposits held under lien by NRBs or their nominated parties.
"These loans may be used for personal or business purposes, excluding agriculture, plantation activities and real estate-related investments," a senior BB official said in response to a query.
The official added that the loan proceeds may also be used to support non-repatriable investments in Bangladesh or the purchase of residential property for self-use, subject to compliance with relevant regulations.
Industry insiders welcomed the central bank's latest initiative, saying the NRCTA framework would deepen the financial intermediation of remittances, improve the efficiency of offshore banking operations and provide a structured mechanism for NRBs to participate in domestic investment under a robust regulatory framework.
They also noted that the facility is expected to enhance Taka liquidity for Type A enterprises operating in specialised economic zones, helping support business expansion and investment activities.

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