NRB in Bangladesh”:
Introduction:
A non-
residential Bangladeshis is a Bangladesh who holds a
Bangladeshis passport and has temporarily immigrated
to another country for six months or more for work, residence or any other
purpose.
A person of bangladeshies origin (BIO) is a
person of bangladeshi origin or ancestry (other than from Pakistan, india, and
some other countries) who was or whose ancestors were born in bangladesh but is
not a citizen of bangladesh and is the citizen of another country. A BIO might
have been a citizen of bangladesh and subsequently taken the citizenship of
another country.
Aims and objectives:
Supporting Bangladeshi people residing abroad
this is known as Non Resident of Bangladesh NRB. NRB-Organization is intended
to set up a Facilitation Center for Non-Resident Bangladeshis in Dhaka. The
main idea of NRB-Organization is to provide Legal assistance and social
counseling in Bangladesh. Bangladeshi people residing abroad those who are
getting various problems in Bangladesh such as legal, education, investment,
insurance, security and many others social problems.
NRB Organization will provide to
Bangladeshis living abroad information about their country especially the
growing investment opportunities in various sectors should not be just more
than a click away. Our aim is also to form a Facilitation Center, which will
act as “one-stop-shop” for addressing all the queries of the Non-Resident
BangNRB Organization will provide to Bangladeshis living abroad information
about their country especially the growing investment opportunities in various
sectors should not be just more than a click away. Our aim is also to form a
Facilitation Center, which will act as “one-stop-shop” for addressing all the
queries of the Non-Resident Bangladeshis regarding opportunities available in
the coladeshis regarding opportunities available in the countries.
Government policies for the NRB’s:
1. Policy of providing
privilized citizen services for the NRB’s 2008: providing priviledged citizen
services like( separate immigration facilities, medical, educational facilities
etc) for remitting at least $ 5000 each year.
2. Policy of selecting
commercially important NRB persons 2006: selecting a CIP – NRB for investing
certain amount of foreign exchange in the country, importing Bangladeshi goods
and enjoying privileged citizen services like separate immigration facilities,
medical facilities, educational facilities etc.
More should be added
Different banks incentives
to promote NRB’s roles:
Remittance
card service:
Islami
Bank Bangladesh Limited has introduced ‘Islami Bank Remittance Card’ to
send money from abroad. This card ensures the Non Residence Bangladeshi of safe
and quick hassle free money transfer to their family.
Benefits
- 24 Hour Service.
- Can be received this card from
any IBBL branch without any fee.
- Draw money from any IBBL booth.
- Card Balance Inquiry from any
IBBL booth.
- Foreign Remittance is deposited
in this card.
- Bank account is not necessary
- Maximum Tk. 50,000.00 from ATM
booth and any number of amount from bank counter can be drawn.
- Only foreign remittance sender
/ receiver can take this service of Remittance Card.
- Utility Bill can be paid by
Remittance Card.
- Balance inquery from SMS or
iBanking Service.
Transaction Limit
- For Cash Withdrawal from ATM
booth maximum amount is Tk. 50,000 in a calendar date.
- Any number of amount from bank
counter.
Charges
- No charges is applicable.
NRB’s
entrepreneurs investment scheme (NES):
Islami
Bank Bangladesh Limited (IBBL) being a welfare oriented financial institution
has been offering a broad spectrum financial facilities to the business
houses and individual clients from the very beginning. It has introduced
several investment schemes for different strata and cross sections of people
for their socio-economic uplift and improvement of their quality of living
standard. Our country is fortunate that a lion share of our foreign currency
generates from the earnings of expatriates contributing to the Country’s GDP
and foreign currency reserve. But it is discouraging that a major portion of
the Wage-earners’ remittances are spent in unproductive sector and remain
idle and thereby the nation is being deprived from the desired benefit
therefrom. With a view to encouraging the NRBs to invest their hard earned
money in the productive sectors/areas for their own benefit as well as for
the benefit of the nation as a whole, the authority has been pleased to
introduce the subject Investment Scheme.
Objectives
Eligibility
of the clients:
Purpose
of Investment
Investment
Limit
Period
of Investment
Rate of
Return
Areas of
Investment
Booster
Sectors (as declared by the Government):
General
Sectors:
Securities
and Collateral
Mudaraba NRB saving fund
scheme:
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It is an undergoing fact that
foreign remittances have been contributing a key role in the country's GDP
& Foreign Currency reserve, but it is also true that major portion of the
earnings of expatriates are utilized in unproductive sectors, consequent upon
which the nation as a whole is not getting expected benefit therefrom. In
case, we allow special privilege/incentive to the expatriates, they may be
encouraged to send their remittances through banking channel and save their
hard earned money with us in their deposit accounts. Their savings may help
formation of capital which may be invested in the trade, commerce and
industrial sectors and thereby it may contribute towards the growth and development
of the country. With this objective in view, the Management has approved a
new deposit product in the name of 'Mudaraba NRB Savings Bond
Role in share market:
A Bangladeshi citizen living abroad with
valid status:
1. Either as foreign country’s permanent resident or with valid work permit 2.In case of a foreign passport holder an endorsement either from the relevant Bangladeshi embassy or from Bangladesh foreign ministry stating that “No visa is required” for traveling to Bangladesh – as a proof of dual citizenship
10% of all issued IPO are reserved for NRB –
may be increased very soon for at least very large issues
2. No Capital Gains tax 3.Minimum 60% of ICB NRB Mutual Funds are reserved for NRB’s (Last one advertised on 11th April, 2008) 4. Can also trade in the secondary capital market while abroad through Nominee
Role of nrb in economic development:
It is to be
realized that the civil society of Bangladesh is no longer limited to the
geographical
boundaries of Bangladesh. There now exists a Diaspora Bangladesh, which is
significant in
terms of both number and potential. The non-resident Bangladeshis (NRB) have
been all along
making valuable contribution to Bangladesh’s economy. An important source of
foreign
currency of Bangladesh government is the remittance money sent by
Bangladeshis
working
overseas. In 1996 private transfers to Bangladesh amounted to $1,445 million.
This is
almost equal
to the total foreign disbursement to Bangladesh in that year ($1,450).
(Hossain et
al. 1997.)
However,
revolution in the communications technology, particularly the advent of the
Internet has
now made it possible for the non-resident Bangladeshis to be closely
integrated
with life in
Bangladesh and extend cooperation to the resident Bangladeshis (RB) in
solving
various
problems of the country.19
Environmental
protection is one such area in which the NRBs can fruitfully cooperate
with the RBs.
The NRBs have taken the initiative to set up Bangladesh Environment Network
(BEN) to
unite the strength and resources of the NRBs and the RBs in the common fight
against
environmental
degradation in Bangladesh.
As noted
earlier, the developed countries have by now accumulated considerable
experience in
repairing damage and improving environmental quality. This experience should
be
of much help
to Bangladesh, and the NRBs can work as a direct conduit of this experience.
They can help
transfer the frontier knowledge to the people of Bangladesh.
The
environmental issues often cannot be separated from issues of appropriateness
of
technology.
This is because many environmental problems can be avoided simply by choosing
the right
technologies. This is another area in which the NRBs can play an important
role.
Bangladesh
suffers from a technology-gap vis-à-vis the developed countries. This
technologygap
has both an
external and an internal dimension. The challenge is to close the external
technology gap
without exacerbating the internal technology gap and without aggravating the
environment
gap. In Bangladesh needs to promote such technologies that can bridge all
these
gaps
simultaneously. This is a difficult challenge and requires considerable
effort and creativity.
The NRBs,
because of their physical proximity to the technological frontier can help in
identification
and transfer of such technologies. This will help Bangladesh’s environment.20
Each year
Bangladesh spends a large sum of money on foreign consultants. Often the
advice
these
consultants give is of poor quality, superfluous, and harmful. Bangladesh can
reduce her
dependence on
foreign consultants by using more effectively the technical potentiality and
patriotic zeal
of the non-resident Bangladeshis. This applies
to her environmental efforts too.
NRB’s role in IT sector in
Bangladesh:
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NRB's can help Bangladesh in designing IT related training programmes and collaborating in the areas of producing high quality human resources through right kind of training. Training itself can be an entry point to international market place by placing trained man-power at the disposal of the market.
NRB's can provide information, ideas and guidance to the IT businesses in Bangladesh. They can act as representatives of the Bangladesh based businesses and participate as partners in these businesses.
NRB's can influence government policies in direct and indirect ways. Many of them are closely linked with the top policy-makers. Many are respected for their personal achievements abroad. Many NRB's have influence with the leading Bangladeshi political parties. They can use their connections and influences to achieve policy changes in the IT sector. The following policy changes are immediately needed :
i. Telecommunication sector should be totally opened up for private investment. Every bit of restriction on private investment should be removed. The sooner the restrictions go, the better chance we'll have in changing our economy and the quality of life of our people.
ii. Bangladesh should invite offers from private investors to connect Bangladesh with the Information Super Highway. Government should not get involved in owning and managing this submarine cable. Government should stay out of all telecommunication businesses.
iii. T&T Board should soon be converted into a company and government should hand over the shares to the private sector --- if we want to get out of the present sad state of affairs in the telecommunication sector. If we cannot change this situation, forget about having IT as our launching pad for economic boom.
iv. All restrictions on using national fibre-optic backbone for IT purposes should be immediately removed.
v. We must open up international telecommunications for private sector investments.
vi. Bangladesh should have a truly independent regulatory body outside the control of the government ministries. Telecom is the highway we must take to build our future. Don't allow this to be a narrow dirt-road with pot-holes where corrupt officials are waiting around for their next catch at every step of the way. With such a road Bangladesh will continue to remain where it is right now. Big talks will not change the road condition, and hence the condition of the economy. We must make the telecom a truly superhighway to take us to the future without any stop-lights or sharp turns. Of course, there should be traffic police, but not to slow us down, but to help us achieve safe high-speed driving.
IT is about speed and efficiency. Any compromise on any one of them will push us out of the way. We just cannot afford to comprises.
Incentives to Non-Resident
Bangladeshis ( NRBs)
Investment of NRBs will be treated
on par with FDI. Special incentives are provided to encourage NRBs to invest in
the country. NRBs will enjoy facilities similar to those of foreign
investors. Moreover, they can buy newly issued shares/debentures of
Bangladeshi companies . A quota of 10% has been fixed for NRBs in primary
public shares. Furthermore, they can maintain foreign currency deposits in the
Non-resident Foreign Currency Deposit (NFCD) account.
RELAXATION / LIBERALISATION OF
EXCHANGE CONTROL REGULATIONS
Bangladesh
'Taka' is convertible for current external transactions. Individuals/firms
resident in Bangladesh may conduct all current external transactions, including
trade and investment related transaction, through banks in Bangladesh
authorised to deal in foreign exchange ( Authorised Dealers ) without prior
approval of the Bangladesh Bank. Non- resident direct investment in industrial
enterprise in Bangladesh and non-resident portfolio investment through
stock exchanges in Bangladesh also do not require prior approval of the
Bangladesh Bank. Remittance of post-tax dividend/profit on non resident direct
or portfolio investment do not require prior approval. Sale proceeds, including
capital gains on non-resident portfolio investment may also be remitted abroad
without prior approval. Repatriation of sale proceeds of non-resident
investment in unlisted companies is allowed by Bangladesh Bank on the basis of
the net asset value of the shares of the company. Investors may obtain
relevant procedural details by contacting any Authorised Dealer bank in
Bangladesh .
To facilitate investment, prior approval of the Bangladesh Bank is no longer required for :
* remittance of profits to their head offices by foreign firms and companies operating in Bangladesh
* issuance of shares to non-residents against investment for setting up industries in Bangladesh.
* remittance of dividends on such shares to the non-resident investors.
* portfolio investment by non-residents including foreign individuals/enterprises in shares and securities through stock exchanges in Bangladesh .
* remittance of dividends on portfolio investment by non-residents through stock exchanges in Bangladesh .
* remittance of sale proceeds, including capital gains of portfolio investments of non-residents through stock exchanges in Bangladesh
* remittance of principal and interest instalments on loans/suppliers credits obtained by industrial units from foreign lenders with approval of the BOI. 100% foreign owned ( Type A) industrial units in the EPZs (Export Processing Zone) do not require prior permission of BOI for such foreign borrowing.
* remittance in repayment of principal and payment of interest of such loans.
* remittance of technical fees and royalties against technical assistance/royalty agreements in conformity with BOI guidelines.
* remittance of savings of expatriate personnel at the time of their leaving Bangladesh, out of the salaries and benefits stated in their employment contracts as approved by BOI.
* extension of term loans by banks on normal banking considerations to foreign firms operating in Bangladesh
* extension of working capital loans to all foreign owned/controlled industrial and trading firms/companies by banks on the basis of bank customer relationship and normal banking practice.
* obtaining of interest-free repatriable short-term foreign currency loans by foreign firms investing in Bangladesh from their head offices or any other sources through any authorised dealer.
To facilitate investment, prior approval of the Bangladesh Bank is no longer required for :
* remittance of profits to their head offices by foreign firms and companies operating in Bangladesh
* issuance of shares to non-residents against investment for setting up industries in Bangladesh.
* remittance of dividends on such shares to the non-resident investors.
* portfolio investment by non-residents including foreign individuals/enterprises in shares and securities through stock exchanges in Bangladesh .
* remittance of dividends on portfolio investment by non-residents through stock exchanges in Bangladesh .
* remittance of sale proceeds, including capital gains of portfolio investments of non-residents through stock exchanges in Bangladesh
* remittance of principal and interest instalments on loans/suppliers credits obtained by industrial units from foreign lenders with approval of the BOI. 100% foreign owned ( Type A) industrial units in the EPZs (Export Processing Zone) do not require prior permission of BOI for such foreign borrowing.
* remittance in repayment of principal and payment of interest of such loans.
* remittance of technical fees and royalties against technical assistance/royalty agreements in conformity with BOI guidelines.
* remittance of savings of expatriate personnel at the time of their leaving Bangladesh, out of the salaries and benefits stated in their employment contracts as approved by BOI.
* extension of term loans by banks on normal banking considerations to foreign firms operating in Bangladesh
* extension of working capital loans to all foreign owned/controlled industrial and trading firms/companies by banks on the basis of bank customer relationship and normal banking practice.
* obtaining of interest-free repatriable short-term foreign currency loans by foreign firms investing in Bangladesh from their head offices or any other sources through any authorised dealer.
Facilities/Incentives :
(a) For foreign direct investment,
there is no limitation pertaining to foreign equity participation, i.e. 100
percent foreign equity is allowed. Non-resident institutional or individual
investors can make portfolio investments in stock exchanges in Bangladesh.
Foreign investors or companies may obtain full working loans from local banks.
The terms of such loans will be determined on the basis of bank-client
relationship.
(b) A foreign technician employed in
foreign companies will not be subjected to personal tax up to 3 (three)
years , and beyond that period his/ her personal income tax payment will be
governed by the existence or non-existence of agreement on avoidance of double
taxation with country of citizenship.
(c) Full repatriation of capital
invested from foreign sources will be allowed. Similarly, profits and dividend
accruing to foreign investment may be transferred in full. If foreign investors
reinvest their repatriable dividends and or retained earnings, those will be
treated as new investment. Foreigners employed in Bangladesh are entitled to
remit up to 50 percent of their salary and will enjoy facilities for full
repatriation of their savings and retirement benefits.
(d) Foreign entrepreneurs are,
therefore, entitled to the same facilities as domestic entrepreneurs with
respect to tax holiday, payment of royalty, technical know-how fees etc.
(e) The process of issuing work
permits to foreign experts on the recommendation of investing foreign companies
or joint ventures will operate without any hindrance or restriction. Multiple
entry visa" will be issued to prospective foreign investors for 3 years.
In the case of experts," multiple entry visa" will be issued for the
whole tenure of their assignments.
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