Instructor: Tofayel SIR

Course Title: MBM604 MID_2 EMBM_3rd BATCH

Foreign Currency Accounts

Bangladesh Bank has authorized the banks to maintain different types of foreign currency accounts and
convertible taka accounts. The followings are the regulations laid down by Bangladesh Bank in respect of
opening and maintaining these accounts in Authorized Dealer branches:

Features:
 This is a savings type private foreign currency denominated account.
 Account can be opened without initial deposit.
 Account holder or his/her nominee can operate this account.

Eligibility:
Those who are Bangladesh nationals residing abroad, Bangladesh nationals getting salary in foreign
currency in Bangladesh and foreign nationals residing abroad or in Bangladesh, foreign missions and
their expatriate employees are eligible to open this savings type Foreign Currency account. This type of
account can also be opened in the name of organization duly registered abroad.

Requirements for opening FC Account:

 Two copies of recent passport size photograph
 Photocopy of passport
 Photocopy of work permit
 Salary certificate or employer’s certificate
 Letter of Authority for nominee
 Other related documents required for opening this type of account.

Facilities:
 Deposited foreign currency can be encashed in BDT.
 Deposited foreign currency can be sent abroad through bank.
 If the balance of this account is deposited as term basis, applicable interest can be earned on
outstanding balances.
 A nominee will be selected by account holder for transaction.
 Nominee can receive local currency (BDT) against any foreign currency.

Non Resident Foreign Currency Deposit (NFCD):

Features:
 This account can be opened from abroad by sending foreign currency through bank and required
documents or after returning from abroad temporarily or permanently.
 Minimum amount to open this account is USD1000/- GBP500/- or equivalent any other foreign
currency. For foreign persons / organizations / investors, it is USD25000/- or equivalent any other
foreign currency.
Instructor: Tofayel SIR
Course Title: MBM604 MID_2 EMBM_3rd BATCH
 This account can be opened in USD, GBP, EURO or JPY for a period of 1/3/6/12 months which is
renewable.

Eligibility:
This is a foreign currency denominated account. Non-resident Bangladesh nationals residing and working
abroad, Bangladeshi residing abroad and having dual citizenship, Bangladesh nationals working in
Bangladesh Mission abroad and regular officials of any government / autonomous organizations, state
owned banks posted abroad or other legitimate international organizations are eligible to open NFCD
account.

Requirements for opening NFCD Account:

 Two copies of recent passport size photograph
 Photocopy of passport
 Citizenship certificate***
 Salary certificate or employer’s certificate
 Other related documents required for opening this type of account.

Facilities:
 Deposited foreign currency can be encashed in BDT.
 Foreign currency can be sent abroad through bank.
 Foreign currency can be taken with while going abroad. **
 Applicable interest can be earned on deposited amount of related foreign currency.
 Interest earned against this account is tax free. ***

Resident Foreign Currency Deposit (RFCD)

Features:
 This is a foreign currency denominated account.
 Persons ordinarily resident in Bangladesh can open this account with the foreign currency they bring
back with them from abroad.

Eligibility:
Persons ordinarily resident in Bangladesh can open and maintain RFCD account in the form of savings
nature with foreign currency brought in at the time of their return from abroad.

Requirements for opening RFCD Account:

 Two copies of recent passport size photograph
 Photocopy of passport
 Salary certificate or employer’s certificate
 For the Officers of Different Embassy they need not submit all these documents but the Employers
certificate is must.
 Other related documents required for opening this type of account.
Instructor: Tofayel SIR
Course Title: MBM604 MID_2 EMBM_3rd BATCH

Facilities:
 Deposited foreign currency can be encashed in BDT.
 Foreign currency can be sent abroad through bank.
 Foreign currency can be taken with while going abroad.
 Applicable interest can be earned on deposited amount of related foreign currency.

Exporter's Retention Quota (ERQ) Account:

Features:

 It is a demand deposit account which can be debited or credited frequently for bonafide persons.
 Foreign exchange out of the retention quota may be maintained in FC accounts with the concerned
ADs in US Dollar, Pound Sterling, Euro or Japanese Yen upon realization of the export proceeds.
 Balances in these accounts may be used by the exporters for bonafide business purposes, such as
business visits abroad, participation in export fairs and seminars, establishment and maintenance of
offices abroad, import of raw materials, machineries and spares etc. without prior approval of
Bangladesh Bank.

Eligibility:
 An exporter may open a foreign currency account with any AD branch of bank in order to keep
his foreign exchange retention quota in the Exporter's Retention Quota (ERQ) Account.

Required documents:
 Memorandum and Articles of Association of the exporter’s company ***
 Board resolution of the company for opening and operation of the ERQ account. **
 Other related documents required for opening this type of account.

Facilities:
 On realization of export proceeds in foreign exchange, the concerned AD credits the exporter's quotas
allowed from accounts time to time to the ERQ account holder's foreign currency account.
 Applicable advance payment may be effective from this account for bonafide business purpose.
 International Credit Card may be issued to the exporters against balances held in the ERQ account.
 Interest may be paid to the ERQ account, if it is kept as interest bearing renewable term deposit with
maximum balance of USD2000/- or its equivalent.

NON-RESIDENT INVESTOR'S TAKA ACCOUNTS (NITA)

Features:
1. The non-resident investor (non-resident person/institutions including non-resident Bangladesh
nationals) shall open a NITA with any AD in Bangladesh
2. Balances in the NITA may freely be used to buy Bangladeshi shares/securities.
3. These balances are also freely transferable to the Foreign Currency Account
4. Transfer and outward remittances will be reported to the Bangladesh Bank in the monthly
statements of NITA
Instructor: Tofayel SIR
Course Title: MBM604 MID_2 EMBM_3rd BATCH

5. NITA can be operated by the account-holder himself or by a nominee

6. Tax adjusted Dividends/interest earnings on the shares/securities bought through the NITA, may
be credited to the NITA
7. After adjusting respective tax on capital gain Sale proceeds of the securities purchased through the
NITA may also be credited to the NITA.
8. local funds from any sources other than those mentioned at 6 & 7 above can’t be credited to NITA
9. No loan facilities shall be allowed by the ADs in the Non-resident Investor's Taka Accounts.