The administration intends to implement a 30-day processing deadline for requests to transfer foreign investment earnings, alongside economic reforms designed to lower operating expenses and increase confidence among investors. These suggested changes, detailed in a budget proposal, address regulatory hurdles impacting international investors while streamlining banking operations, international trade dealings, and funding availability.
Streamlined Repatriation and Investment Procedures
Efforts to align banking verification, tax paperwork, and authorization steps will be intensified to guarantee the prompt handling of profit transfer requests. The administration has also made it simpler to transfer and reinvest funds from stocks or bonds bought via a Non-Resident Investors’ Taka Account (NITA). Eliminating the need for an auditor’s report allows these funds to be directly deposited into the appropriate NITA, permitting repatriation and reinvestment within a single business day and cutting compliance expenses.
Share transfers and capital return involving private companies will also be simplified. Valuation reports will not be mandatory for deals valued up to Tk 10 million, while the return of transaction funds totaling up to Tk 1.0 billion can be processed without prior clearance from Bangladesh Bank. For larger amounts, licensed valuation companies will be utilized to ensure share valuations remain neutral and acceptable.
The state is exploring the creation of a certification council consisting of members from Bangladesh Bank, the Bangladesh Investment Development Authority (BIDA), the Bangladesh Securities and Exchange Commission (BSEC), the National Board of Revenue, and the private sector. Accepting reports from approved valuation firms could reduce redundant checks and holdups in capital repatriation.
Broader Digital Financial Services and E-Loans
To decrease the duration and cost of international trade, the state plans to slowly ease the compulsory use of letters of credit for trustworthy importers and low-risk items. The utilization of Documents against Payment (D/P) and Telegraphic Transfer (TT) will be extended where suitable. Businesses registered in Bangladesh will also be permitted to secure taka loans backed by foreign bank guarantees or Standby Letters of Credit (SBLC), irrespective of ownership or control structures, provided standard rules apply.
The approval workflow for establishing, leasing, renewing, and moving bank branches and business hubs has also been simplified. Within established regional rent caps, banks may approve such decisions via their own boards of directors. Additionally, the government has simplified obtaining a Sukuk Investor ID (SIID) for investing in government Sukuk by defining the necessary application forms, paperwork, and fee structures.
To boost digital financial services, Real Time Gross Settlement (RTGS) will be enhanced, featuring quicker payment and settlement arrangements among banks, mobile financial providers, and other payment platforms. The text states that the authorization of digital micro-loans, or e-Loans, has been granted. Credits of up to Tk 500,000 can be issued for a 12-month period via a fully digital procedure to improve credit access and cut client time and operational costs.
Loan Adjustments for Vehicles and Personal Financing
Regulations for financing green vehicles and personal credit have been eased. The highest auto loan for electric and hybrid cars has been raised from Tk 6.0 million to Tk 8.0 million, and the debt-equity ratio has shifted from 60:40 to 80:20. The cap on unsecured personal loans has doubled from Tk 500,000 to Tk 1.0 million, while secured personal loans may now reach Tk 4.0 million.
Credit card limits have likewise been lifted. The maximum limit for unsecured credit cards has increased from Tk 1.0 million to Tk 2.0 million, whereas the limit secured against assets has risen from Tk 2.0 million to Tk 4.0 million. Banks may issue new credit cards with board approval, bypassing the need for prior Bangladesh Bank clearance.
Pre-litigation mediation is being promoted to recover defaulted loans, aiming to minimize court-related delays and expenses and enhance recovery efficiency. These actions aim to lower administrative hurdles and expenses in investment, trade, banking, and lending, while boosting investor confidence, financial inclusion, and the digital economy’s expansion.
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