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 insurance, the circular said, adding that currency movements exceeding limits prescribed by banks shall be handled through licensed service providers or secure, escorted transport.
Banks have also been advised to provide secure counters and temporary vault storage for late-day deposits, while withdrawals may be made through cheques or slips by authorized representatives subject to available balances.
Overdrafts, credit facilities, transfers, remittances, and third-party transactions through these accounts are strictly prohibited, requiring all settlements to be done exclusively in physical foreign currency notes.
Why it matters
This central bank policy establishes secure custodial account facilities for licensed money changers to improve physical currency management and mitigate transit risks in Bangladesh.