Reports of massive withdrawal rebutted: RDA inflows surpass $4bn mark so far: SBP

KARACHI: The State Bank of Pakistan (SBP) on Monday categorically rejected the report of massive withdrawal from the Roshan Digital Account (RDA) due to change of powers in the federal government.

RDA inflows are growing and total inflows have now surpassed the $4 billion mark in April, the SBP said.

RDA is a major initiative of State Bank, in collaboration with commercial banks operating in Pakistan to provide innovative banking solutions to the Non-Resident Pakistanis (NRPs), including Non-Resident Pakistan Origin Card (POC) holders, seeking to undertake banking, payment and investment activities in Pakistan. The initiative was launched in September 2020 and offered up to 7 percent profit on US dollar investment

For the last two days, since the no confidence motion against former Prime Minister Imran Khan was succeeded, there were rumors on the social media that overseas Pakistanis have started withdrawal of investment from the RDA and some $1.8 billion have been withdrawn in 24 hours. These rumors created panic in the market.

However, the State Bank on Monday rejected these rumors and said that still the NRPs are investing in these accounts and Naya Pakistan Certificates.

Roshan Digital Account: inflows cross $3.9bn, NPCs attract over two-thirds of total

“The SBP rebuts fake news on social media about large withdrawals from Roshan Digital Account and slowdown in inflows”, the SBP said on its twitter account. An official of SBP told Business Recorder that so far inflows, in April, are very strong at around $86 million and there are no abnormal outflows. He informed that overseas Pakistanis have invested some $3.92 billion in their home country through the RDAs by the end of March 2022. “The inflows under the RDAs are continuing upward growth and total inflows have now surpassed the $4 billion mark in April. Most of the inflows were received on account of the Naya Pakistan Certificates”, he added.

The NRPs invested about two-thirds of the total investment amounting to $2.7 billion in the Naya Pakistan Certificates, which were especially offered by the government to the expatriates at a very attractive rate of return from 5-7 percent. Overseas Pakistanis from 175 countries have opened some 388,494 accounts under RDA. Through RDA for the first time in Pakistan’s history, NRPs are being provided an opportunity to remotely open an account in Pakistan through an entirely digital and online process without any need to visit a bank branch. Opening of the account will require only a basic set of information and documents and banks have been asked to complete all necessary customer due diligence within 48 hours. The State Bank has made it possible to allow our overseas Pakistanis to open an account in a Pakistani bank completely digitally in a presence-less manner and without needing to visit any bank, any embassy or consulate.

Copyright Business Recorder, 2022