Financial Times

NSB to attract "informal" remittances
By Quintus Perera
The National Savings Bank (NSB), after three years of negotiations with the Central Bank, is now able to implement its own Non-Residential Foreign Currency (NRFC) accounts for Sri Lankans employed overseas.

NSB, essentially a savings institution, has a massive solid base of Rs 180 billion in deposits and operates through a network of 121 branches and 4,000 post offices and sub post offices. The NSB NRFC scheme was announced at a media briefing in Colombo earlier in the week and later on Thursday it was launched.

NSB is also attempting to target the hitherto untapped informal money flow to the country which is now not accounted for, by offering various facilities and concessions and within the next two years, hopes to bag Rs. 5 billion.

The NSB NRFC Accounts branded as 'Ranmasu' could be opened before going abroad, and a Ranmasu NRFC card containing details required for remitting funds would be issued.

They could be opened as Savings Accounts or Fixed Deposits.

The interest earned by NSB Ranmasu is exempt from income tax. The benefits are: a credit of Rs 500 to the Rata Ithuru Savings Account on receipt of the first inward remittance; commission free to transfer into rupee accounts; annual lottery draw offering attractive prizes with a chance for every US$ 500 in the account; a mega draw once in 3 years; a donation of Rs 5,000 for the children or brothers and sisters of unmarried customers who obtain first or second place in the Year five scholarship examination and gratuity payments according to the bank's regulations on the demise of the Ranmusu NRFC account holder.

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