The Bangladesh Bank has relaxed the reporting requirements for opening temporary foreign currency (FC) accounts used for foreign investment. As a result, investors are no longer required to immediately notify the central bank upon opening such accounts.

Officials believe this move will encourage more commercial banks to facilitate the opening of foreign investment accounts, thereby helping to attract greater foreign direct investment (FDI) into the country.

The directive was issued through a circular on Wednesday (October 1).

From the beginning, the caretaker government has taken various initiatives to attract foreign investment, and this latest decision by Bangladesh Bank is part of that broader strategy.

According to the circular, the reporting requirements for Non-Resident Taka Accounts (NRTA) and temporary foreign currency accounts used for foreign investment have been eased. Under the new rules, banks are no longer required to report account openings immediately. Instead, they now have 14 days to submit the encashment certificate, online transaction ID, account details, and the details of the

Foreign funds may be converted into local currency or retained in foreign currency for up to one year. If converted to local currency, Form-C must be submitted online, and the company must sign the specified documents within 14 days of incorporation.

If the proposed investment does not go through, the remaining funds—after deducting necessary expenses—can be repatriated abroad without requiring prior approval from Bangladesh Bank.