Photo: BSS

DHAKA, June 23, 2026 (BSS) - Bangladesh Bank (BB) has introduced a new 
account facility, the Non-Resident Convertible Taka Account (NRCTA), aimed at 
encouraging greater participation of Non-Resident Bangladeshis (NRBs) in the 
country's economy by providing a flexible and fully repatriable investment 
and savings platform.

The central bank today issued the directive under the provisions of the 
Offshore Banking Act, 2024 and the Foreign Exchange Regulation Act, 1947. 

The new regulations came into effect immediately.

Under the circular, NRBs will be allowed to open and maintain NRCTAs with 
Offshore Banking Units (OBUs) of scheduled banks in Bangladesh.

The accounts may be operated as savings, current or fixed deposit accounts 
and will carry market-based interest or profit rates while being denominated 
in local currency.

The initiative is intended to broaden offshore banking operations, facilitate 
foreign exchange inflows and create additional avenues for NRBs to invest and 
manage funds in Bangladesh while retaining the right to convert and 
repatriate their money abroad, the BB said.

The central bank specified that funds credited to NRCTAs may originate from 
inward remittances, transfers from foreign currency accounts maintained by 
non-residents, transfers from other NRCTAs, accrued interest or profits, and 
repatriable proceeds from foreign direct investment, portfolio investment and 
other Bangladesh Bank-approved investments.

Refunds of share subscriptions and other authorized payments may also be 
credited to the accounts.

According to the circular, both the principal amount and accrued earnings 
held in NRCTAs will be freely repatriable. 

Account holders will be able to use the funds for legitimate local payments, 
transfers to other non-resident accounts, conversion into foreign currency 
accounts, and investments in shares and other approved investment 
instruments.

In a significant move, the central bank has authorized OBUs to utilize Taka 
deposits mobilized through NRCTAs for providing Taka-denominated loans to 
Type A industrial enterprises operating in Export Processing Zones (EPZs), 
Economic Zones (EZs) and Hi-Tech Parks. 

The financing will be limited to current account expenditures such as 
salaries, wages and utility bills, while loan repayments must be made 
exclusively from export proceeds.

The circular also permits Domestic Banking Units (DBUs) to extend loans 
against NRCTA deposits kept under lien for personal and business purposes.

However, such financing cannot be used for relending, agricultural or 
plantation activities, or real estate business ventures.

Eligible uses include non-repatriable direct investments in Bangladesh and 
the purchase of residential property for the account holder's own use.

Bangladesh Bank imposed strict safeguards, stating that no direct or indirect 
foreign exchange benefit may be provided to a depositor in exchange for 
pledging NRCTA deposits. 

Repayment of loans secured against these deposits must be made either through 
adjustment of the pledged deposits or through fresh inward remittances routed 
via formal banking channels.

To ensure transparency and financial discipline, the central bank directed 
banks to maintain separate accounting of funds mobilized through NRCTAs and 
comply fully with Know Your Customer (KYC), Anti-Money Laundering and 
Combating the Financing of Terrorism (AML/CFT) requirements, as well as 
applicable tax regulations.

The circular also encourages digital banking services, asking OBUs to 
facilitate online account opening and electronic banking facilities.

Banks intending to launch such services will be required to inform Bangladesh 
Bank about their product features and risk management arrangements 
beforehand.

The directive was signed by Md. Harun-Ar-Rashid, Director of the Foreign 
Exchange Policy Department-1 (FEPD-1) of Bangladesh Bank.