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BB to Introduce Deposit Scheme in Local Banks for Expatriates

The central bank will set up a facility through which Bangladeshi expatriates will be able to open deposit accounts in any bank in Bangladesh.

The deposit scheme will be in the form of deposits for a term of one year or more with monthly or quarterly deposit options. Foreign currency will be converted to taka in the accounts, reports media.

The Bangladesh Bank is preparing a circular in this regard, which will be published shortly, so that expatriates do not face financial difficulties after returning home permanently, according to bank officials.

An official of the central bank, requesting anonymity, said, "Once the circular is released, expatriates will be able to open deposit accounts in any bank in Bangladesh. Expatriates will have to deposit foreign currency in their accounts through banks or money exchange centers overseas, and the foreign currency will be converted to taka in Bangladesh's accounts. If they come to the country on a temporary visit, they can deposit foreign currency to their accounts directly after filling up the Money and Jewelry (FMJ) Form of the banks concerned."

The initiative would help create a safety net for non-resident Bangladeshis, added the official.

Banks will be asked to provide competitive interest or profit on the deposits.

Besides, the central bank will ask all the banks to encourage the expatriates with incentives. 

Non-resident Bangladeshis will be able to open accounts without any installment on behalf of individuals working abroad for employment. Banks will be allowed to issue taka loans to non-resident account holders in order to satisfy their personal conditions against the protection of bank accounts in compliance with usual lending practices.

Upon maturity, authorized dealers (the branches of the banks involved dealing with foreign currency) will pay the deposited money with interest to the beneficiaries or nominees of the accounts.

When account holders want to open fixed deposit accounts with cash until the completion of their bank accounts, they will be allowed to do so.

In case they start living in Bangladesh permanently after their return, the deposited money can be made available to them either in a one-time settlement or in monthly or quarterly settlements like a pension. 

Account holders can continue to add to the local source deposit accounts after they have arrived.

The circular will also contain the prospect of returning the deposited money with interest on maturity to account holders abroad with the approval of the Bangladesh Bank.

Dr Tasneem Siddique, chairperson of the Refugee and Migratory Movement Research Unit, hailed the initiative and said that it would help expatriates meet their future needs after they return home.

"This initiative will be helpful for expatriates, especially those from the low-income group," she added. 

The flow of remittances has recently increased. Bangladesh earned $2.60 billion in remittances in July of this year. This month's monthly inflow of remittances reached an all-time record.

Nonetheless, given the improved influx of remittances, experts do not see much optimism, as a large number of migrant workers may return permanently to their homes as a consequence of the Covid-19 pandemic.

According to the Brac Migration Programme, around 2.5 lakh migrants have returned home from different countries amid the pandemic. 

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