'In addition to attractive profit, SIBPLC offers priority services'

Question (Q): According to Bangladesh Bank's new circular, what steps have you taken regarding offshore banking?
Answer (A): Social Islami Bank PLC has launched the Mudaraba International Term Deposit (MITD) Account in line with Bangladesh Bank's Foreign Exchange Policy Department's notification. MITD Account allows depositors to save in foreign currencies and get profit on term deposits. We have published details of such account in different print and electronic media. Meanwhile SIB PLC arranged customer get together in different countries including KSA, UAE, Singapore, Malaysia etc.
Q: Offshore banking has been in Bangladesh since the mid-eighties. What new additions have been made?
A: Yes, Offshore banking was introduced around 1985 in this country Initially, it catered mainly to 100% foreign-owned companies in economic zones and hi-tech parks, providing short-term investments, LC guarantees, bill negotiation, and other foreign trade services. The legislature have recently enacted a new off shore banking act in 2024 which enables individual persons, including resident and non-residents, to open and maintain Term deposit accounts in approved foreign currencies in OBUs. According to the latest circular, expatriate foreign nationals, domestic and international organizations, institutional investors, and resident Bangladeshi individuals or organizations benefiting non-residents can open MITD accounts, which now offer attractive profit rate as well as depositor are exempted from any tax or duty on the balance and any profit paid.
Q: What currencies can be used for your MITD account?
A: Customers can open MITD accounts in US Dollar, British Pound, and Euro. Soon, we will offer accounts in Australian Dollar, Canadian Dollar, Swiss Franc, Chinese Yuan, and Singapore Dollar. Our offshore banking units will eventually support all foreign currencies approved by Bangladesh Bank.
Q: What are the deposit periods, and what profit rates are offered?
A: Customers can choose deposit periods ranging from three months to five years. The maximum profit rate is 8.60%. Many customers, both local and foreign are showing interest to open these accounts.
Q: How can customers deposit foreign currency?
A: Customers can apply to open MITD account to our Offshore Banking Unit (OBUs) through our online portal, email, or through a branch by submitting necessary documents. OBU will peruse the documents and generate an account number. OBU will provide the account number along with its NOSTRO details to the remitter through which he can remit the fund. That means, deposits can be made using foreign currency earned from approved sources through inward remittance via foreign banking channels.
Q: Do you offer any additional facilities to customers?
A: Yes, in addition to attractive profit rates, we provide priority banking services to MITD account holders. This includes transportation from Dhaka Airport to convenient destinations and discounts at SIBL Hospital. We believe these services will help us achieve our goals.
Q: What are the special benefits of this account?
A: The profit earned from this account is completely tax-free. OBU account holder can transfer/outward remit his entire fund to his designated account in abroad. Also the account holder may transfer his fund to the onshore bank account to meet his expenditure or payment.
Overall, the reformed and relaxed regulations will positively impact the foreign exchange position by increasing the flow of Dollar, reducing the reserve crisis, and attracting investment.