B Mirror Report: Bangladesh Bank has introduced a new banking facility, allowing non-resident Bangladeshis (NRBs) to open Convertible Taka Accounts (CTAs) as part of efforts to increase remittance inflows, strengthen investment, and expand offshore banking activities.
The central bank issued a circular to all scheduled banks on Monday outlining the new framework. Under the scheme, funds deposited in these accounts, including the principal and accrued interest or profits, will be fully repatriable.
According to Bangladesh Bank, remittances sent through official banking channels can be held through offshore banking units as non-resident convertible current, savings, or fixed deposit (FDR) accounts. The accounts can also receive funds transferred from other non-resident accounts, interest or profit earnings, investment income, refunds from share subscriptions, and other approved foreign exchange-related receipts.
A senior Bangladesh Bank official said the new arrangement would provide expatriates with greater flexibility in managing their funds and encourage them to send money through formal channels.
The circular stated that the funds in Convertible Taka Accounts can be used for local payments, conversion into foreign currency accounts, foreign direct investment (FDI), and portfolio investments.
The facility also allows the use of these funds to provide taka-denominated loans to wholly foreign-owned Type-A industries operating in specialized economic zones. However, such loans can only be used for approved current expenditures, including salaries, wages, and utility bills, and must be repaid from the companies’ export earnings.
Additionally, local bank branches will be able to offer personal and business loans to NRBs or their nominees against these accounts. However, the lending facility will not apply to investments in agriculture, forestry, and housing sectors. The funds may also be used for non-repatriable investments or for purchasing residential property for personal use.
Another central bank official said the new account system would strengthen the financial intermediation of remittances, make offshore banking activities more dynamic, and create an effective platform for expatriate Bangladeshis to participate in domestic investments while improving liquidity management in specialized economic zones.

