FEPD Circular No. 18: Taka loans to Non-resident Bangladeshi (NRBs) working abroad

Foreign Exchange Policy Department
Bangladesh Bank
Head Office, Dhaka www.bb.org.bd

FE Circular No. 18 Date: October 02, 2024

All Authorized Dealers of
Foreign Exchange in Bangladesh

Dear Sirs,

Taka loans to Non-Resident Bangladeshi (NRBs) working abroad

In terms of Section 5(1)(a) of the Foreign Exchange Regulation Act, 1947, prior permission from Bangladesh Bank is required to grant credits to non-residents. General permission has been given for extending housing finance to non-resident Bangladeshis. Details are outlined at paragraph 4(F), chapter 16 of the Guidelines for Foreign Exchange Transactions-2018, Vol-1 (GFET).

2. To widen the financing facilities, it has been decided that banks can extend loans to NRBs for bonafide purposes on banker-customer relations, subject to observance of the following instructions:

(a) NRB-borrowers should be regular remitters through official channels;

(b) The loan amount shall be up to the requirements or 10.00 (Ten) Lac Taka, whichever is lower;

(c) Repayments of the loan need to be settled out of inward remittances sent by borrowers working abroad;

(d) Banks shall adhere to applicable credit norms, prudential regulations, customers' due diligence, etc, as usual.

Please bring the contents of this circular to the notice of all your concerned constituents.

Yours faithfully,

(Monoar Uddin Ahmed)
Director (FEPD)
Phone: +880-255665001-6/22128