FE Circular No. 07: Relaxation of Regulatory Requirement in Offshore Banking Operations

Banks are no longer required to maintain any Cash Reserve Ratio with Bangladesh Bank for offshore banking operations. Offshore Banking Operations are permitted to place funds to their Domestic Banking Units without limitation to settling specific import payments or other permissible obligations under prevailing foreign exchange rules.

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Foreign Exchange Policy Department
Bangladesh Bank
Head Office
Motijheel
Dhaka-1000 www.bb.org.bd

FE Circular No. 07 Date: 29 February 2024
Managing Director/CEOs
All Scheduled Banks in Bangladesh

Dear Sirs,
Relaxation of Regulatory Requirement in Offshore Banking Operations Please refer to Para-7 of BRPD Circular Letter No. 31 dated 18th June 2020 and FEID Circular Letter No. 07 dated 28th December 2023 on the captioned subject.
02. To further facilitate the offshore banking operations, it has been decided that banks are not
required to maintain any Cash Reserve Ratio (CRR) with Bangladesh Bank for offshore banking operations (copy of the notification enclosed).
03. It has also been decided that, Offshore Banking Operations (OBOs) are allowed to place
funds to their Domestic Banking Units (DBUs) without limiting to settle the import payment of capital machinery, industrial raw materials, imports by the government and other permissible payment obligations as per prevailing foreign exchange rules and regulations .
04. You are advised to bring the contents of this circular to the notice of your Offshore Banking
Operations.
Yours faithfully,
(Sharmin Rahman)
Additional Director
Phone: 9530487

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Lineage: In force

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This document amends: BRPD Circular Letter No. 31: Policy for Offshore Banking Operation of the Banks

Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works