Page 11 - Banking Finance August 2023

ROUNDUP

Industry

Two Bangladesh banks to lection, net of refunds, growing 15.87 settlement in rupees as the "first step
per cent to Rs. 4.75 trillion by July 9, in a great journey".
offer INR transactions
higher than the net collections for the
He said transaction costs in trade with
Two Bangladeshi banks including the corresponding period of last year," fi-
India would reduce with the introduc-
largest state-owned lender plan to in- nance ministry said while releasing the
tion of the taka-rupee dual currency
troduce trade transactions in Indian provisional figures.
card which was "almost ready (to be)
rupees, officials said, as the South
It said that the numbers so far "con- launched from September".
Asian nation looks to build up its shrink-
tinue to register steady growth." On a
ing foreign exchange reserves. Until Officials said under the formal arrange-
gross basis, collection from direct
now, Bangladesh has only carried out ment, trade would be transacted in
taxes, which includes income and cor-
trade transactions in dollars. rupee and then gradually in
poration taxes, grew 14.65 per cent to
Bangladeshi currency.
State-owned Sonali Bank and Eastern Rs. 5.17 trillion.
Banks in Bangladesh and India have
Bank have opened "nostro" accounts
"The provisional figure is 26.05 per
in rupees with State Bank of India been given permission to open nostro
cent of the total Budget Estimates of
(SBI.NS) and ICICI Bank (ICBK.NS), offi- accounts, an account in a bank of an-
direct taxes for the current financial
cials from both banks said. other country for the purpose of for-
year 2024, " the ministry said. The
eign currency transactions. The ex-
A nostro account refers to an account central government expects to collect
change rate will be fixed in line with
a bank holds abroad at another bank Rs. 18.2 trillion this financial year,
market demand and banks involved in
in the currency of that jurisdiction. which is 10.5 per cent more than what
the process.
Such accounts are used for interna- was collected in FY23, as per revised
tional trade and to settle other foreign estimates.
exchange transactions. Resignation doesn't ab-
Bangladesh, India launch solve auditor from report-
Net Direct Tax mop-up
trade transactions in Rupee ing fraud
rises 16% in FY24
Bangladesh and India launched the
The National Financial Reporting Au-
India's direct tax collection soared 16 much-anticipated trade transaction in
thority (NFRA) has said that resigna-
per cent to touch Rs. 4.75 trillion this rupees, a move aimed at reducing de-
tion does not absolve the auditor of his
financial year, showing continuity in pendence on the US dollar and
responsibility to report suspected fraud
revenue growth despite external strengthening regional currency and
or fraud as mandated by law. The
headwinds. trade.
NFRA in a circular dated June 26 has
The collection has gathered pace over Bangladesh Bank governor Abdur Rouf said that it has noticed that auditors
past months, with net direct tax col- Talukder described the start of trade are not fulfilling their statutory respon-
BANKING FINANCE | AUGUST | 2023 | 11