“A big thanks to our Overseas Pakistanis! #RoshanDigitalAccount deposits have crossed $800m, after an inflow of $212m in March. Inflows have been accelerating every month since the RDA launch in September 2020,” the State Bank of Pakistan (SBP) tweeted on Thursday.
A big thanks to our Overseas Pakistanis! #RoshanDigitalAccount deposits have crossed $800mn, after an inflow of $212mn in March. Inflows have been accelerating every month since the RDA launch in September 2020. To learn more about RDA, visit https://t.co/VFN8sp3BBY pic.twitter.com/GyNnATKilp
— SBP (@StateBank_Pak) April 1, 2021
State Bank’s latest initiative Roshan Digital Accounts (RDA’s), in collaboration with commercial banks operating in Pakistan, launched on September 10, 2020 has managed to captivate the attention of the overseas Pakistanis by offering much higher returns on deposits compared to the returns in developed economies.
Read More: Roshan Digital Accounts by SBP cross $200 million, PM thanks overseas Pakistani
The RDA’s were basically introduced to allow Non-Resident Pakistanis (NRPs) to partake in banking, payment and investment activities in Pakistan without being physically present in the country.
Total RDA deposits have now reached $806m, with the highest amount of $212m received in March, reflecting the growing confidence of the expat’s community in Pakistan’s economy.
The State Bank said the $806m inflows came from over 100 countries in 110,000 accounts.
Through RDA’s, NRP’s can now have access to online banking, domestic funds transfer, payment of utility bills and tuition fees. Moreover, they can also invest in government bills, stock exchange, and real estate sector with the option of full repatriation. This new banking solution aims to encourage Pakistanis living abroad to invest in their own country and help elevate the nation’s economy.
On the investments made through Roshan Digital Accounts, account holders won’t have to file any tax returns. A full and final rate of 10% withholding tax will be charged on profits, instead, saving the account holders from a lot of hassle.
SBP has also launched Naya Pakistan Savings Certificate with the aim of boosting the country’s economy by attracting foreign investments. They are high-interest yielding sovereign investment certificates issued by the State Bank of Pakistan (SBP) for Foreign Currency Value Account holders (FCVA) and Pakistani Rupee Value Account holders (NRVA).
They offer lucrative risk-free returns for the investors over different maturities and are also presenting the NRP’s with an opportunity to play their part in the development of a progressive Pakistan. NPCs offer attractive risk-free returns over different maturities. The buyers can own the certificate in US dollar with the highest interest rate of 7pc and in Pak rupees with the highest rate of 11pc per annum provided the investment is made for 5 years. They are available in both conventional and Shariah compliant versions administered by the State Bank of Pakistan.
Though the incumbent government has been making concentrated efforts to attract foreign currency by introducing different schemes for the diaspora, none of them have been able to garner such a response.
According to financial analysts, the inflows till now have been extremely encouraging and can be a good substitute for hot money. They could also increase in the second half of the current fiscal FY21, if the current account remains surplus with an improved foreign exchange reserve, they believe.