Circular No. 14: Opening and Operation of Non-Resident Convertible Taka Accounts

Foreign Exchange Policy Department-1 Bangladesh Bank Head Office Dhaka www.bb.org.bd FEPD-1 Circular No. 14 Date: June 23, 2026 All Offshore Banking Units and Managing Director/Chief Executive Officer All Scheduled Commercial Banks in Bangladesh Dear Sirs, Opening and Operation of Non-Resident Convertible Taka Accounts (NRCTA) In exercise of the powers conferred under the Offshore Banking Act, 2024 and the Foreign Exchange Regulation Act, 1947, it has been decided to introduce a new account facility titled Non-Resident Convertible Taka Account (NRCTA) for Non-Resident Bangladeshis (NRBs). The following guidelines are hereby issued for the opening, operation, and permissible uses of such accounts: A. Eligibility and Account Features (1) NRCTAs may be opened and maintained by NRBs with Offshore Banking Units (OBUs) of scheduled banks in any form, e.g., savings, current, or fixed deposit account, etc. against inward remittances received through banking channel. (2) NRCTAs may be credited with: (i) Inward remittances of foreign exchange, including funds from private foreign currency accounts/non-resident foreign currency deposit accounts after conversion in Taka; (ii) Transfer from other NRCTAs; (iii) Interest/profit accruing on the funds held in such accounts; (iv) Repatriable funds derived from foreign direct investment, foreign portfolio investment, or other investments permitted by Bangladesh Bank originally made from NRCTAs or inward remittances; (v) Refund of share subscriptions to new issues of Bangladeshi companies or portion thereof, if the amount of subscription was paid from NRCTAs or by debit in private foreign currency accounts/non￾resident foreign currency deposit accounts; (vi) Other refunds, if any, payment of which was made by debit in NRCTAs; (vii) Any other refund or payment eligible under general or special authorization by Bangladesh Bank. (3) NRCTAs maintained as deposit form shall be market driven interest/profit-bearing accounts denominated in Taka. (4) Both principal and accrued interest shall be freely repatriable abroad, with scope for local disbursements through respective banks as under: (a) Legitimate local disbursements; (b) Transfers to other NRCTAs or Non-Resident Taka Accounts (NRTAs); (c) Transfers to private foreign currency accounts or non-resident foreign currency deposit accounts in equivalent foreign currency; (d) Purchase of shares under foreign direct investment (FDI) or transfer to Non-resident Investor's Taka Accounts (NITAs) for portfolio investment, or for placement of fund in such investment covered by regulations to repatriate investment proceeds including profit/earnings abroad. Cont’d to page-2

-2- B. Permissible Uses of NRCTA Deposits (1) Financing for Type A industrial enterprises in specialized zones: Deposits mobilized under NRCTAs may be utilized by OBUs for extending Taka-denominated loans to Type A industrial enterprises in specialized zones, subject to the following: (i) Such loans may only be availed for meeting admissible current account expenses in Bangladesh, such as salaries, wages, and utility payments; (ii) Repayment of these loans shall be made exclusively from export proceeds of the borrowing enterprises. (2) Financing for NRBs and/or their designated third parties: Loans may be granted by Domestic Banking Units (DBUs) of account maintaining OBUs against the deposits retained in NRCTAs as lien, subject to the following conditions: (i) Loans may be extended in Bangladesh for personal purposes or for business activities, excluding relending or carrying on agricultural, plantation activities or for investment in real estate business due to higher risk, long gestation periods, price volatility and uncertain returns; (ii) Loans may be used for making non-repatriable direct investments in Bangladesh or for acquiring residential property for own use, in compliance with applicable regulations; (iii) There should be no direct or indirect foreign exchange consideration for the non-resident depositor agreeing to pledge his deposits to enable the resident individual/firm/company to obtain such facilities; (iv) Repayment shall be met through adjustment of the deposits held in NRCTAs or fresh inward remittances through banking channels. (3) The usual credit norms and considerations shall be applicable to such credit facilities. (4) Financing from NRCTA sources shall be ring-fenced and separately accounted for by OBUs. C. OBUs shall ensure full compliance with applicable account opening and maintenance regulations, including KYC procedures, AML/CFT standards, regulations on taxes, and routine reporting to Bangladesh Bank. D. OBUs are advised to introduce NRCTAs for NRBs with facilities to open the accounts through online interactive web platforms, including electronic/online banking facilities. Prior to introduction, OBUs shall notify Bangladesh Bank with product features, operational modalities, risk management, and compliance framework. This circular is issued in exercise of the powers conferred on it under Section 11(7) and Section 25(2) of the Offshore Banking Act, 2024; and Section 20(3) of the FER Act, 1947. Please bring the contents of this circular, effective immediately, to the notice of all your constituents. Yours faithfully,

(Md. Harun-Ar-Rashid) Director (FEPD-1) Phone: 9530123