The facilities are designed for physical foreign-currency storage rather than ordinary interest-bearing deposits.
Bangladesh Bank has allowed authorised dealer banks to provide foreign-currency custodial accounts to licensed money changers, BSS reported on November 4. The measure is intended to improve cash management and reduce risks associated with storing and transporting physical currency.
Under the reported circular, the accounts are limited to the custody, deposit and withdrawal of foreign-currency notes. They will not operate as interest-bearing deposits. Withdrawals must remain within available balances, and the arrangements do not provide overdrafts or credit facilities.
The framework includes requirements relating to cash-in-transit insurance, authorised representatives and secure handling. Larger movements may require licensed transit services or escorted transport, depending on limits set by the bank. The report also said banks may apply reasonable account maintenance and cash-handling charges. These are specialised facilities for licensed businesses, rather than a new general-purpose account for the public.
Context: Keeping cash securely is a different activity from transferring money internationally or providing an electronic payment service. Custodial arrangements can formalise where currency is held and who is permitted to move it, but their effectiveness depends on documentation, physical security and consistent operating procedures.
Money changers and participating banks will need to work from the actual circular and their agreed arrangements when putting the measure into practice. Details such as designated branches, cut-off times and authorised personnel affect everyday use. The policy announcement establishes a framework; it does not show that every bank has already introduced the service or that account facilities are available at every branch across the country. Implementation arrangements may differ between participating banks.
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