Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Tuesday eased its guidelines for foreign exchange transactions (GFET) allowing foreign investors to maintain temporary non-resident taka account aiming to boost foreign investment in the country.

The commercial banks may open non-resident taka account (NRTA) in the name of the proposed company of foreign investors seeking to invest in Bangladesh without prior approval of the Bangladesh Bank (BB), the country’s central bank said in a circular Tuesday.

“Such accounts may be credited with inward remittance received from abroad only,” it added.

A new account in the name of the company may be opened following usual procedure after registration of the business, officials said.

However, account opened previously should be closed immediately and balance lying therein should be transferred to the new account, they added.

“If, for any reason, the proposed investment does not take place the balance of the account, after meeting the required expenses, may be allowed to be repatriated without taking prior approval from the BB,” the central bank said.

“The central bank has taken such measures aiming to encourage foreign investors to invest in the country,” a BB senior official told BBN in Dhaka, adding that the foreign investors may keep their investment fund for an interim period through opening such account.

Under the amended guidelines, the banks may release registration or participation fee of the government officials, employees of banks, financial institutions and faculties of national recognized banking training institutions for attending training, seminar or workshop abroad.

The commercial banks may allow remittance of subscription fee for academic journal to be procured from aboard by public universities, medical colleges, private university upto US$ 3000 or equivalent for an institution each calendar year.

The banks, however, are allowed to release foreign exchange for admission and study by Bangladeshi nationals in regular courses such as undergraduate, post graduate, language course pre-requisite to bachelor degree and professional diploma certificate courses in aboard.

BBN/SI/SI/AD-23September08-9:36 PM (BST)