The central bank has allowed all scheduled banks to expand their offshore banking activities by providing a greater range of services to non-resident clients in an effort to increase foreign-currency profits.

The Bangladesh Bank (BB) announced on Wednesday that offshore banking units (OBUs) can now offer services, including trade-related tasks like advising, collecting, and settlements, to non-resident clients who have accounts with them.
Trade-related transactions including advising, collections, and settlements are among the services offered, although they are not the only ones.

The notification stated that OBUs are not permitted to incur exposure or make financial commitments on behalf of clients for these services, and that they must adhere to a number of directives in this regard.
Through globally renowned money transfer operators, online payment gateway service providers (OPGSPs), digital wallets or card schemes, and other authorized payment service providers, OBUs are also allowed to organize the repatriation of inward remittances for credit to clients’ accounts.

Officials clarified that in these situations, OBUs need to establish suitable agreements with international operators for the repatriation of foreign currency.
The letter also stated that these procedures will make it easier for clients’ accounts to receive repatriated funds.
The foreign money must be transmitted right away to the beneficiaries’ banks via the BD-RTGS system if the repatriated monies are owned by clients who have accounts with other OBUs or banks.

A senior central banker told The Financial Express (FE) that “by providing services to non-resident consumers, the extended scope will enable OBUs to generate larger service income in foreign currency.”