Due to time zones, distance, and legal restrictions, managing investments back home can be difficult for Pakistanis living abroad. The Roshan Digital Account (RDA), on the other hand, streamlines this procedure and enables non-resident Pakistanis to invest with ease and get a host of advantages. The main characteristics of the RDA, its operation, and how to use it for investing will all be covered in this blog.
A Roshan Digital Account (RDA): What is it?
The State Bank of Pakistan (SBP) launched the Roshan Digital Account (RDA), a digital banking program created especially for non-resident Pakistanis (NRPs). It gives Pakistanis living abroad a simple and practical way to handle their money, make investments across a range of asset classes, and support the nation’s economic expansion.
The Roshan Digital Account’s Key Features
Pakistanis living abroad can now use their RDA account to invest. The RDA offers a safe and effective approach to allocate your investments, regardless of your preference for equities, mutual funds, or other investment products.
- Smooth Integration: You may manage your portfolio from any location in the world thanks to the smooth integration of your RDA account with investing platforms.
- Diversified Options: Depending on your risk tolerance and investing objectives, purchase a range of financial instruments, including Shariah-compliant options.
Acceptance of Phone Numbers from Other Countries
The RDA’s ability to accept your foreign phone number is one of its main advantages. This implies that you don’t need to keep a Pakistani phone number in order to administer your account and get notifications.
- Communication Ease: Use your international phone to stay informed about your account activities and investments, making sure you don’t overlook any crucial updates.
- Global Access: Stay informed and connected more easily by managing your investments from any location in the world.
Simple Deposits and Withdrawals
With the RDA, managing your money is simple and effective, and you may deposit and withdraw money with ease.
- Flexible Transactions: You have financial flexibility by being able to transfer money from your foreign bank account to your RDA account and take it out as needed.
Investment Opportunities Through RDA
One of the biggest advantages of an RDA is the access it provides to diverse investment opportunities in Pakistan. Depending on your risk tolerance and financial goals, you can explore multiple options, such as:
- Naya Pakistan Certificates (NPCs): These are risk-free, high-return government-backed securities available in both conventional and Shariah-compliant versions.
- Stock Market Investments: Trade on the Pakistan Stock Exchange (PSX) and invest in various stocks to build a long-term portfolio.
- Mutual Funds: Invest in professionally managed funds that offer diversification and stability.
- Real Estate: Non-resident Pakistanis can purchase property in Pakistan through legal and secure channels.
With such a wide range of options, RDA holders can grow their wealth efficiently while benefiting from a secure financial ecosystem.
Tax Benefits and Repatriation of Funds
Another significant advantage of RDA is its tax efficiency. Investments made through RDA accounts are subject to a final tax regime, meaning that no additional taxes are applicable on returns earned through NPCs, stocks, or mutual funds.
Additionally, the RDA allows for full repatriation of funds, meaning investors can transfer their earnings and principal amount back to their foreign accounts without any restrictions. This makes it a convenient and transparent option for overseas Pakistanis looking to invest in their home country.
How to Create an Account on Roshan Digital
The procedure of creating a Roshan Digital Account is simple and may be done online:
- Select a Bank: Choose a bank in Pakistan that provides RDA services. Comprehensive RDA services are offered by big banks such as JS Bank, UBL, Meezan Bank, HBL, and others.
- Fill out the application: Complete the web application that the bank offers. Identification documents, proof of NRP status, and personal information are required.
- Verification: The bank will check your information and supporting documentation. Your RDA account will be opened after verification.
- Put Money Into Your Account: Transfer money from your foreign bank account to your RDA account.
- Get Investing: Invest with several options and other Pakistani financial goods using your RDA account.
Final Thoughts
For Pakistanis living abroad, the Roshan Digital Account (RDA) is revolutionary because it offers a practical, safe, and effective means of managing investments and money back home. The RDA makes it simpler than ever for non-resident Pakistanis to participate in their financial futures with features including seamless integration, acceptance of international phone numbers, and simple withdrawal and deposit procedures.
