LAHORE: Director Exchange Policy Department State Bank of Pakistan (SBP) Arshad Mehmood Bhatti has said that some three million Non Resident Pakistanis (NRPs) are expected to avail Roshan Digital Account (RDA) scheme.

Talking to this scribe, he said, there is a high size of market as the number of NRPs is over nine million and there is a large potential for banks to grow their business under RDA. Already, he said, 88,000 accounts have been opened under RDA from over 98 countries and nine banks are offering their services to NRPs. Other banks are also needed to align their systems in order to avail this opportunity by making their systems strong and robust.

He said SBP data suggests that the RDA has received highest response from the Gulf States, particularly Saudi Arabia and United Arab Emirates. It is followed by the UK and the USA, he added.

According to him, 75 percent of accounts belong to these four destinations. However, he said Pakistanis living in other countries are also taking interest in RDA.

When asked about the issues being faced by banks under RDA scheme, he said banks in Pakistan have strong systems with IT and security backups and strict monitoring against cyber attacks. Therefore, he said, the NRPs are feeling comfortable in opening accounts under RDA.

He said Pakistani banks have made arrangements with their counter banks abroad and reduced the transfer of funds cost to $5, which was ranging earlier from $30 to $50 per transaction.

Meanwhile, Javed Ahmed, a tax expert, told this scribe that tax regime has been simplified for RDA under the regulatory framework, as conditions and restrictions creating hurdles in smooth sailing of the scheme have been removed. Furthermore, he said, tax rates on profits and capital gains have been reduced on investments through RDA.

Copyright Business Recorder, 2021