Banks allowed to collect funds from overseas banking operations

The Bangladesh Bank has allowed the Domestic Banking Units (DBU) to collect funds from their offshore banking operations to settle the import payment of capital machinery, industrial raw materials and imports by the government.

The BB issued a notice signed by Foreign Exchange Investment Department’s director Jagannath Chandra Ghosh to this end on Thursday.

The central bank has taken the decision with a view to easing the pressure on the foreign exchange reserves.

“To facilitate external transactions by DBUs, Offshore Banking Operations, keeping its own business and obligations uninterrupted, may place funds to their DBUs for the tenure of 6 (six) months with a limit not exceeding 25 per cent of total regulatory capital of the bank to settle the import payment of capital machinery, industrial raw materials and imports by the government,” said the central bank notice.

This relaxation shall remain valid for placement of funds to DBUs till 31 December, the notice added.