Nations Trust Bank introduces Indian Rupee (INR) as designated foreign currency

Friday, 3 November 2023 00:20 - - {{hitsCtrl.values.hits}}

Move seeks to enhance customer convenience, foster economic growth and deepen diplomatic ties

Nations Trust Bank PLC has announced a step forward in addressing the growing needs of customers while aligning with the recent directive from the Central Bank of Sri Lanka (CBSL) with the introduction of the Indian Rupee (INR) as a designated foreign currency.

The inclusion of the INR as a designated foreign currency offers numerous benefits to both the bank and its customers. Nations Trust Bank now provides INR-denominated regulated accounts, including PFCA (Personal Foreign Currency Account) and BFCA (Business Foreign Currency Account). These accounts cater to individuals and businesses seeking to engage in international trade transactions with India, streamlining currency exchange processes, reducing transaction costs, and increasing overall convenience.

The utilisation of INR for international trade settlement has the potential to stimulate economic growth, enhance trade relations, benefiting not just the bank and its customers but also the broader community and the country as a whole. With this move, Nations Trust Bank solidifies its competitive position and will increase revenue through foreign exchange services, thereby contributing to the growth and sustainability of the country’s foreign reserves.

Holders of INR accounts can engage in a range of transactions, including currency note encashments, currency issuance, and international trade settlement activities such as imports, exports, Letter of Credits (LCs), and bank guarantees, excluding capital transactions or investments outside of Sri Lanka.

Within Sri Lanka, INR accounts can be used for INR note acceptance, issuance, and foreign currency exchange. Hotels can deposit INR collected from non-resident guests into BFCA accounts, subject to specific conditions and regulations. Individuals can open a Personal Foreign Currency Account (PFCA) within 90 days of returning from travel, while certain limitations may apply.