In a bid to increase investment by expatriate professionals and businesses, the government today (October 3) lifted investment limits for non-resident Bangladeshis (NRBs) under the Employee Development Bonds.

The Internal Resources Division announced the changes in a press release.

This change aligns the Wage Earner Bond with other foreign currency savings instruments such as the US Dollar Premium Bond and the US Dollar Investment Bond.

In addition, the directive introduced greater flexibility by allowing automatic reinvestment for several durations.

Under the Employee Development Bond Rules, 1981 (amended on 23 May 2015), it was possible to invest any amount in the bond.

This situation, however, changed during the Covid-19 outbreak, with the IRD imposing an investment limit of Taka 10 million (or its foreign currency equivalent) on employee development bonds, bonus bonds in US dollars and US dollar investment bonds.

The cap on US dollar premium bonds and US dollar investment bonds was lifted later in 2022, allowing unlimited investments, but this was not the case for employee development bonds.

Meanwhile, as per the new guidelines, NRB seafarers, pilots and cabin crew employed by foreign shipping and airlines are now also eligible to invest in employee bonds.

Additionally, retirees will now have the opportunity to receive monthly benefits on retiree savings certificates, instead of the previous quarterly structure.

These changes, which are expected to come into effect on December 1, 2024, include the ability to reinvest in National Savings Scheme (NSS) products, including the Family Savings Certificate, Retirement Savings Certificate, savings based on three-month profits, the Employee Development Bond. , US dollar premium bonds and US dollar investment bonds.

For Bangladesh Savings Certificates and Postal Savings Bank Term Accounts with a tenor of five years, the principal and interest will be eligible for reinvestment on maturity.

Under the revised policy, NRBs can invest transferred funds in employee development bonds for an initial term, with the option to reinvest for two additional terms, allowing up to 15 years of investment in total.

Similarly, U.S. Dollar Premium Bonds and Investment Bonds allow reinvestment for up to four additional terms, for a total investment period of 15 years.

IRD believes that these incentives, along with the removal of the investment cap, will attract more foreign exchange investments from expatriates, thereby promoting sustainable economic progress for Bangladesh.