Dhaka: Bangladesh Bank (BB) has relaxed the reporting requirements for temporary Non-resident Taka Accounts (NRTAs) and temporary Foreign Currency (FC) accounts to facilitate foreign investment in the country. To this end, the central bank issued a circular stating that it is no longer necessary to report the opening of NRTAs and temporary FC accounts to the Foreign Exchange Investment Department (FEID) of Bangladesh Bank.
According to Bangladesh Sangbad Sangstha, instead of the previous requirement, Authorised Dealers (ADs) must now notify FEID within 14 days, providing all relevant documents such as encashment certificates, online transaction IDs, NRTA and/or temporary FC account statements, and statements of the permanent account reflecting corresponding debit and credit entries. Under the new rules, funds may be encashed into local currency (taka) or retained in foreign currency for up to one year.
The circular further explained that if the foreign investment fund is encashed, investors may submit Form-C electronically, with the company authority required to sign the printed copy within 14 days after the incorporation of the company. It also noted that if, for any reason, the proposed investment or incorporation does not take place, the remaining balance in the account, after covering the necessary expenses, may be repatriated without prior approval from Bangladesh Bank.
In such situations, ADs are required to report account closures within 14 days, along with copies of Form-C, TM forms, transaction records, and NRTA or temporary FC account statements.