Bangladesh Bank expands NRCTA access to authorised dealer banks
The revised framework allows NRBs to use account balances for domestic payments, investments and eligible foreign currency purchases, while permitting banks to use the funds for lending.
The Bangladesh Bank has allowed authorised dealer (AD) banks, alongside offshore banking units, to open and maintain Non-Resident Convertible Taka Accounts (NRCTAs) for Non-Resident Bangladeshis (NRBs), expanding access to the accounts and their permitted uses.
In a circular issued yesterday, the central bank said the move aims to broaden the scope and enhance the utility of NRCTAs. The accounts can be maintained as savings, current or fixed-deposit accounts, funded through inward remittances and other permitted sources.
Under the revised framework, NRBs can transfer funds to NRCTAs from inward remittances, private foreign currency accounts, non-resident foreign currency deposit accounts and other NRCTAs. Interest or profit, eligible investment proceeds and certain refunds can also be credited to the accounts.
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NRBs can use their NRCTA balances for legitimate domestic payments, transfers to other NRCTAs and eligible non-resident Taka accounts, investments in Bangladesh, and purchases of foreign currency for repatriation, subject to applicable regulations.
Banks allowed to use NRCTA funds for lending
The revised rules allow AD banks to use funds mobilised through NRCTAs for regular taka-denominated lending to eligible customers, subject to applicable credit, prudential and risk-management requirements.
Banks can also provide taka-denominated loans to NRBs or designated third parties against NRCTA deposits held under lien. Such loans may be used for personal or legitimate business purposes, including eligible non-repatriable direct investment and the purchase of residential property for the borrower's own use.
Provisions for account operation and repatriation
The revised framework also facilitates the operation of NRCTAs through power of attorney, the remittance of account balances to eligible non-resident nominees following the account holder's death, and the continuation of accounts after an account holder permanently returns to Bangladesh.
The Bangladesh Bank has encouraged banks to introduce online account-opening procedures and electronic banking facilities for NRCTAs, subject to applicable regulatory and compliance requirements.
The latest circular supersedes an earlier circular issued on 23 June 2026. Existing NRCTAs and transactions conducted under the earlier circular will remain valid and will henceforth be governed by the revised provisions.
The expansion is expected to give NRBs greater flexibility in managing their taka funds in Bangladesh while enabling banks to make more productive use of deposits mobilised through these accounts.
