The Bangladesh Bank (BB) on Wednesday has allowed banks to offer foreign currency (FC) custodial account facilities to licensed money changers to ensure secure cash management and mitigate risks associated with the physical transportation of foreign currencies.
These accounts will be used exclusively for the safe custody, deposit and withdrawal of physical foreign currency notes and will not carry interest, according to a circular issued by the central bank.
It also said deposits may be made irrespective of the ceiling, subject to documented business turnover and transaction profiles.
To ensure security, money changers shall maintain valid cash-in-transit (CIT) insurance, the circular said, adding that currency movements exceeding limits prescribed by banks shall be handled through licensed CIT service providers or secure, escorted transport.
Banks have also been advised to provide secure counters and temporary vault storage for late-day deposits.
Withdrawals may be made through cheques or withdrawal slips by duly authorized representatives, subject to available balances.
Overdrafts and credit facilities are strictly prohibited.
The central bank has also prohibited transfers, remittances and third-party transactions through these accounts, requiring all transactions to be settled exclusively in physical foreign currency notes.
