Dhaka, July 3 -- Bangladesh Bank has authorised commercial banks to accept foreign currency deposits held in Offshore Banking Units (OBUs), private foreign currency accounts, and non-resident foreign currency deposit accounts as collateral to secure taka (BDT) loans.

The move, announced via a notication, enables short-term working capital lending in taka against offshore deposits -- subject to conditions -- with no collateral fees.

To manage currency risk, banks may hold a margin on the foreign exchange value of the deposit.

Existing OBUs with International Banking Accounts remain ineligible for this scheme.

Borrowers must maintain a legitimate relationship with the offshore depositor, whose consent is required.

Banks are directed to...