Roshan Digital Account
ROSHAN Digital Account (RDA) is State Bank of Pakistan’s initiative in collaboration with the commercial banks in Pakistan.
The RDA aims to provide innovative banking system for millions of Non-Resident Pakistanis (NRPs) seeking to undertake the payment, banking and the investment in Pakistan for the first time in the history of the Pakistan.
NRPs are being provided the opportunity to remotely open a digital account in Pakistan through an entirely digital and online process without the needs to visit the bank branch.
The Roshan Digital Account changes the lifestyle of banking of the Pakistan history. It fully integrates the Pakistanis Diaspora with the Pakistan banking and payment system.
The RDA provides several services with digital access to all the conventional account services which include bills, funds transfer, fee payment and e-commerce.
It enables NRP to invest in Naya Pakistan Certificate (NPCs) issued by the Pakistan government at risk free rates. On the NPC the 10% withholding tax on profit is applicable which is full and final.
It also gives an opportunity to invest in the listed companies at the Pakistan Stock Exchange. It also enables opening up investment opportunities in Pakistan’s property market.
Now the funds that are available in the account can be remitted back from Pakistan without any distortion in the process.
Now the major banks in the Pakistani banking sector are collaborating with the SBP on the RDA operations.
The SBP Governor maintains the Roshan Digital Account will allow Overseas Pakistanis to engage themselves with the e-commerce activities in Pakistan, which technically means to pay the bills for the families and digitally and remotely invest in the Pakistan stock market.
The RDA means that the account holder will be able to seamlessly remit the funds back to the country where the individual lives.
Now to open a Roshan Digital Account a customer has to choose from a foreign currency or rupee account or both.
For the NRPSs the accounts will use the information and will enable the real time online conversion of the currency from a foreign currency into Pakistani rupee dominated account and also the opposite.
The INPCCL will issue the INPC in a scrip-less format, which will be subscribed by the eligible individuals through the foreign currency value account or NRP rupee value account being marketed as the Roshan Digital Account.
The funds for investment in INPC’s must be remitted from abroad in the investor FCVA or NRVA after 30th day of June 2020.
The investor will have the option to subscribe PKR dominated or US Dollar dominated INPC’s of 3 month, 6 month, 12 month and 3 year or 5 year tenure.
—The writer is contributing columnist, based in Islamabad.