Who can open private foreign currency account?

 

Ans. Private foreign currency account may be opened in the name of :  

i). Bangladeshi nationals residing abroad.

ii). Foreign nationals residing abroad or in Bangladesh.

iii). Foreign Firms registered abroad & operating in Bangladesh or abroad.

iv). Foreign mission, International development organizations and their expatriate employees.

v). Bangladesh nationals working with the foreign/international organizations operating in Bangladesh provided their salary is paid in foreign currency.

vi). International NGO’s & Donor agencies.

vii). Diplomatic Bonded Warehouse licensed by the customs authority.

viii). Exporter to keep his foreign exchange retention quota in this account. ix). Industrial unit operating in EPZ’s. privilege 1

 

 

What are the significance of FC Account?

Ans. i). Account can be opened without initial deposit & no introduction is required.

ii). Remain operative even if operation not made for a particular time.

iii). Both the account holder & nominee can operate the account.

iv). Wage earners can remit fund from abroad.

v). First transaction normally takes place when remittance deposited.

vi). Wage earners may also deposit currency notes, travelers cheque, draft brought into Bangladesh.

vii). Entire remittance from abroad is free from income tax.

viii). The account may be opened in US Dollar, Pound Sterling, GBP, EURO or Japanese Yen.

ix). Eligible person may also open such FC account even after their return but within six months of the date of return to Bangladesh.

x). Funds in foreign currency account is freely transferable from one FC account to any other FC account at the request of account holder.

xi). Payment may be made freely abroad from these FC accounts to the extent of balances lying therein.

 

 

What are the documents required to open FC account?

Ans.

• Account opening form duly filled in and signed.
• Photographs of the account holder.
• Photocopy of the employment contract.
• Photocopy of passport of the account holder (first 7 pages) and Visa.
• Photographs of the nominee duly attested by the account holder.
• Letter of Authority (for nominee)
• Specimen Signature card which is used both for the account holder and the nominee. 
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• Who can open Non Resident Foreign Currency Account (NFCD)?

Ans. privilege encourage 

• All non resident Bangladesh nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad may maintain interest bearing time deposit named “Non Resident Foreign Currency Deposit Account. With the AD’s.

• Bangladesh nationals serving with embassies, High Commission of Bangladesh in foreign countries and the Officer/Staff of the Govt. Semi Govt. /Autonomous/nationalized banks posted abroad or deputed with International agencies like IMF, World Bank, IDB, ADB etc. during their assignment abroad may open such account.

• Foreign nationals and companies/firms registered and or incorporated abroad, Bank, other financial institutes including institutional investors and 100% export foreign owned (A type) industrial units in the Export Processing Zone in Bangladesh may open NFCD account.

 

 

What are the significance of NFCD Account?

  Ans.  

• NFCD account can be opened with funds transferred from existed foreign currency accounts maintained by the wage earners with the authorized dealers in Bangladesh.
• The account are in the nature of term deposit account maturing after one month, three months, six months, and one year. The accounts may be maintained in the US Dollar, Pound Sterling, Japanese Yen & EURO with minimum amount of USD 1000 or Pound Sterling 500 equivalent. 
• Foreign nationals and companies/firms registered and or incorporated abroad, Bank, other financial institutes including institutional investors and 100% export foreign owned (A type) industrial units in the Export Processing Zone in Bangladesh may open NFCD account. The minimum amount of deposits in such case should be USD 25,000 or its equivalent in Pound Sterling, EURO or Japanese Yen.

 

What is the procedure for payment of interest against NFCD Account?

Ans. The Authorized Dealers will pay interest on deposits into the account at the EURO currency deposit rate. In case of premature repayment, the interest amount will be forfeited to the depositing Authorized Dealer.  

 

Write short notes on :

i). Retention quota for Merchandise Exporters.

Ii). Retention quota for service exporters.

iii). Retention Quota for new exporters.

 

Ans. i). Retention quota for Merchandise Exporters: In general exporters retention quota is % but merchandise including computer software exporter may retain up to 50% of realized FOB value of their export in foreign currency account in US Dollar, Pound Sterling, Japanese Yen or EURO. For export items with high import content (Such as naptha, furnace oil, bitumen, readymade garments etc.) the retention quota is 10%. Funds from these account can be used to meet bonafide business expenses such as business visit abroad, participation in export fairs and seminars, import of raw materials, machineries and spares parts etc. Funds may be used to set up offices abroad without prior permission of Bangladesh Bank. Exporter may at their option, retain the foreign currency in interest bearing renewable term deposit account (NFCD) in Bangladesh with minimum amount USD. 2,000.00 or Pound Sterling 1500.00 or equivalent in EURO or Japanese Yen.

 

  ii). Retention quota for service exporters: Service exporters may retain 5% of their repatriated income in FC account. Funds can be drawn from these A/C to meet expenses for bonafide business expenses abroad. This quota may also be kept in interest bearing NFCD account.  

 

iii). Retention Quota for new exporters: Annual foreign exchange quota for business travel abroad for new exporters has been set at USD. 6,000.00. Bonafide requirement beyond USD. 6000.00 is accommodated by Bangladesh Bank upon written request.

 

Who are eligible to open RFCD account? How much foreign currency can be kept in RFCD account?

Ans. Persons, Banks or firms who/which ordinarily resides in Bangladesh may open and maintain resident foreign currency deposit (RFCD) accounts with foreign exchange brought in at the time of their return from abroad.   Any amount brought in with declaration to customs authorities on Form FMJ and up to USD.5000.00 brought in without any declaration, can be credited to such account. However, proceeds of exports of goods or services from Bangladesh or commission earnings arising from business deals in Bangladesh shall not be credited to such account.  

 

What are the formalities and precautions to be taken prior opening of RFCD account? What is the rate of interest?

 

Ans. While depositing foreign exchange for credit to such account the depositor shall furnish written declaration, mentioning i). the date of return from abroad ii). The amount of foreign exchange brought in is not a receipt against export of goods or services from Bangladesh and is not a commission due from abroad arising from business deal in Bangladesh.   The AD’s will credit the foreign exchange presented by the depositor to the RFCD account only after examining the passport of the depositor and the FMJ Form (if the amount exceeds USD.5000.00) and after being satisfied about the correctness of the declaration.   Interest in foreign exchange shall be payable on balances in such accounts if the deposits are for a term of not less than one month and the balance is not less than USD. 1000.00 or Pound Sterling 500.00 or its equivalent. The rate of interest shall be one quarter percent (0.25 Percent) less than the rate at which interest is paid on balances of bank in their foreign currency clearing accounts maintained with Bangladesh Bank.

 

Who are eligible to open convertible Taka account?

Ans. Foreign organization/nationals, Diplomatic Missions, UN Organizations, Non-Profit international bodies, Foreign contractors, consultants and expatriate engaged and resident in Bangladesh are allowed to open convertible Taka account.

 

Who are eligible to open Non convertible Taka account?

Ans. Foreign organizations and their expatriate personnel may open non convertible Taka account with AD’s.

 

What do you mean by Non resident Taka account?

Ans. The accounts of individuals, firm or companies resident outside Bangladesh are designated as non resident accounts are treated as accounts of countries of permanent residence of the account holder.

 

What is Non resident blocked Taka account?

Ans. A blocked account means an account opened as a blocked account at any branch in Bangladesh of a bank authorized in this behalf by Bangladesh Bank or an account blocked by the order of Bangladesh Bank.   Section 6 of FER Act. Confers powers on Bangladesh Bank to block account in Bangladesh of any person resident outside Bangladesh and to direct that payment of any sum due to a non resident may be made only to such a blocked account.