Roshan Digital Account: How To Open Overseas Account in Pakistan

As a Non-Resident Pakistani (NRP) working abroad, you may have faced the challenge of managing your financial affairs back home. Sending money to Pakistan for various purposes, such as investments, payments, and family support, can often be a complex and costly endeavour.

To address this issue, the Pakistan financial system has introduced Roshan Digital Accounts (RDAs), providing a streamlined solution for NRPs to conduct banking activities in Pakistan from abroad. In this guide, we will explore the details of Roshan Digital Accounts and offer insights into Remitly, XE Money Transfer, and WorldRemit, the three most cost-effective ways to send money to Pakistan from overseas in 2023, based on Monito's comparison engine.

What is a Roshan Digital Account in Pakistan?

A Roshan Digital Account (RDA) is a significant initiative launched by the State Bank of Pakistan in collaboration with various commercial banks operating within the country.

These accounts offer a unique multi-currency platform that seamlessly operates in both foreign currencies and Pakistani Rupees, and allows for real-time online conversions between them. This innovation caters specifically to Non-Resident Pakistanis (NRPs), including holders of the Non-Resident Pakistan Origin Card (POC), enabling them to engage in a range of banking, payment, and investment activities within Pakistan.

It is important to note that these accounts may only be funded exclusively through foreign remittances services.

Which Pakistani Banks Offer Roshan Digital Accounts?

Some of these banks that offer RDAs include:

• Allied Bank;
• Bank Alfalah;
• Bank AL Habib Ltd;
• The Bank of Punjab;
• Dubai Islamic Bank;
• Faysalbank;
• HBL;
• HabibMetro;
• JS Bank;
• MCB;
• Meezan Bank;
• Samba;
• Standard Chartered;
• UBL;
• and more.

Use Cases of Roshan Digital Accounts

Roshan Digital Accounts cater to a diverse array of use cases for NRPs:

1. RDA Deposits: The profits earned on RDA deposits enjoy tax exemption, eliminating the need to file tax returns for these profits.
2. Banking Transactions: NRPs can enjoy cash withdrawals and account-to-account transfers without any withholding tax.
3. Investment in Naya Pakistan Certificates: NRPs can invest in Naya Pakistan Certificates, and they are subject to a full and final tax of 10% on the profits.
4. Investment in Shares and Mutual Funds: Capital gains from investments in shares and mutual funds are subject to a full and final tax of 15%, ensuring no double taxation.
5. Investment in Property: Capital gains tax of 1% on the property's value at the time of sale is applicable.
6. Inward and Outward Remittances: Funds held in Roshan Digital Accounts can be remitted back from Pakistan without requiring bank or State Bank of Pakistan approval.

Eligibility to Open a Roshan Digital Account

Roshan Digital Accounts are open to individual non-resident Pakistani clients, as well as resident Pakistani clients who have declared wealth abroad. Eligible individuals include those with Pakistani passports, NICOP, POC, or NIC.

This encompasses a broad range of individuals, from the employed and self-employed to students, pensioners, and even housewives. However, entities and companies are ineligible to open Roshan Digital Accounts.

Necessary Documents for Roshan Digital Account Application

Documents you will need in your application may vary from bank to bank. In general, you should expect to provide the following:

• Valid Identity Document (CNIC/SNIC/NICOP/POC, etc);
• Valid passport;
• Proof of NRP status (POC/visa entry/exit stamps, etc);
• Proof of profession & source of funds;
• Live photo.

Features of Overseas Roshan Accounts

Roshan Digital Accounts offer a range of features tailored to meet the financial needs of non-resident Pakistanis. Here are some of the key benefits that you can take advantage of while you work and live overseas:

• Open a Current or Savings Account in PKR or Foreign Currencies (USD / GBP / EUR);
• Money transfers to your overseas account do not require bank or State Bank of Pakistan approval.
• Access to a diverse selection of Wealth Management products.
• Perform utility bill payments, fund transfers within Pakistan;
• Invest in Shariah-compliant shares and Mutual Funds through Internet Banking;
• Invest in the Shariah-compliant scheme of Islamic Naya Pakistan Certificate (INPC).

Everyday Banking Features of Roshan Digital Accounts

Many Roshan Digital Accounts also provide these features for everyday banking and checking accounts:

• No service charges for account usage and transactions;
• Secure Digital/Online Account opening through OTP confirmation for enhanced security;
• Free issuance of debit card for easy access to funds;
• No charges on Internet Banking usage;
• No initial deposit required for account opening;
• No minimum balance requirement for maintaining the account.

Disadvantage of Roshan Digital Accounts

While banks offer real-time conversion, they might not always offer the true mid-market exchange rate. Instead, they apply markups and retain the exchange rate margin.

To ensure you get the best exchange rates and minimal fees. We use extensive data from Monito to give you the top recommendations for remittances to Pakistan. Refer to the next section for our recommended international money transfer companies.

How to Fund Your Roshan Digital Account in Pakistan While Overseas

Upon the account's approval and activation, funding becomes essential. RDA accounts are unique because they must be funded through international remittances. While traditional, large banks offer multiple funding options such as SWIFT transfers and online transfers, they often come with high fees and significant exchange rate margins.

To avoid this, consider using international money transfer companies like Remitly, XE Money Transfer, and WorldRemit. These options offer minimal fixed fees and favorable exchange rates, ensuring efficient and cost-effective remittances:

Remitly

Based on August from 2022 to August 2023, Remitly was the cheapest way to send money in the world to Pakistan. Remitly charges a very small fee of US$1.99 per transfer. Their exchange rates are very competitive as well, hovering around a 0.5% to 2% markup.

Remitly was the best way to send to Pakistan for over 40% of all searches made on Monito's comparison engine. We recommend Remitly if you are funding your Roshan digital bank account from the United Kingdom, the United States, Canada, the European Union, and the United Arab Emirates.

• More info: See our full Remitly review.

XE Money Transfer

Based on August from 2022 to August 2023, XE Money Transfer was the second cheapest way to send money in the world to Pakistan. XE does not allow send cash pick-ups but it does offer excellent rates for bank transfers of all sizes.

XE Money Transfer was the best way to send to Pakistan for over 15% of all searches made on Monito's comparison engine. We recommend Remitly if you are funding your Roshan digital bank account from the United Kingdom, Germany, the United States, Italy, Canada, and Ireland.

More info: See our full XE Money Transfer review.

WorldRemit

Based on August from 2022 to August 2023, WorldRemit was the third cheapest way to send money overall to Pakistan. WorldRemit is an excellent choice for cash pick-up and cash delivery, with a wide network of branches.

WorldRemit was the best way to send to Pakistan for over 12% of all searches made on Monito's comparison engine. We recommend Remitly if you are funding your Roshan digital bank account from the United Kingdom, Germany, the United States, and South Africa.

• More info: See our full WorldRemit review.

Fees and exchange rates are subject to change over time, and depending on your location. To find out which service will offer you the best deal in real-time, run a search on our comparison engine below:

Recap: Best Way to Fund a Roshan Digital Bank Account In Pakistan From Overseas

Here are the three best companies to send remittances to Pakistan, according to Monito data gather from August 2022 to August 2023:

• Remitly: Best overall for cash pick-ups and transfers to Roshan digital accounts.
• XE Money Transfer: Good for small to medium bank transfers, especially from the UK, Germany, and the US.
• WorldRemit: Wide cash pick-up network, and especially good choice if sending from the UK or South Africa.

References Used In This Guide

1. Roshan Digital Account. Standard Chartered. Accessed 8 August 2023.
2. SBP Initiative for Digital Onboarding of Overseas Pakistanis. State Bank of Pakistan. Accessed 8 August 2023.
3. Roshan Digital Account. Meezan Bank. Accessed 8 August 2023.
4. Roshan Digital Account. Allied Bank. Accessed 8 August 2023.