Deposits in RDA cross $800 million mark in 7 months
Last updated on: 03 April,2021 10:33 am
The SBP said the inflows had been accelerating every month since the RDA launched in September 2020
ISLAMABAD (Dunya News) – The deposits in the State Bank of Pakistan (SBP)’s initiatives Roshan Digital Accounts (RDA) have crossed $800 million mark in seven months.
The deposits by the overseas Pakistanis have crossed the $800 million mark on the back of huge inflows of $212 million in March, according to the SBP.
The SBP said the inflows had been accelerating every month since the RDA launched in September 2020. Roshan Digital Accounts is a major initiative of the SBP and the federal government, in collaboration with commercial banks in Pakistan.
These accounts provide innovative banking solutions for millions of Non Resident Pakistanis (NRPs), including Non-Resident Pakistan Origin Card (POC) holders, seeking to undertake banking, payment and investment activities in Pakistan.
The RDA offers investment opportunities in the country and is gaining momentum among the overseas Pakistanis as more than 100,000 accounts have been opened up so far since its launch in September last year.
Experts say that keeping in view the momentum of inflows in the programme, it is expected that total deposits in the RDA would surpass the $1.5 billion mark this year.
For the first time in Pakistan’s history, the NRPs are being provided an opportunity to remotely open an account in Pakistan through an entirely digital and online process without any need to visit a bank branch. Opening of the account will require only a basic set of information and documents. Banks have been asked to complete all necessary customer due diligence within 48 hours.
According to the central bank, the non-resident Pakistanis can invest in Naya Pakistan Certificates (NPCs) issued by the government of Pakistan, in USD, GBP, EURO and PKR at very attractive risk free rates and in both conventional and Shariah-compliant forms.
On NPC, only a 10 percent withholding tax on profits is applicable that is full and final and no filling of tax return is required. Resident Pakistanis who have assets abroad declared with the Federal Board of Revenue can also invest in USD, GBP, EURO denominated NPCs. To do so, they can open a RDA in foreign currency by visiting a bank branch in Pakistan.