Export Import (Exim) Bank of Bangladesh Limited has secured permission from the central bank to extend an overdrawn facility equivalent to five lakh pounds to Exim Exchange Company (UK) Ltd.

The exchange house, which opened more than a decade ago, is a fully-owned subsidiary of the private bank.

The investment (overdrawn) facility will facilitate the execution of inward remittance on time, said the bank in a filing on the Dhaka Stock Exchange today.

An overdraft occurs when there is not enough money in an account to cover a transaction or withdrawal, but the bank allows the transaction anyway.

"This will ultimately benefit the recipients of remittance since they will receive funds quicker than in the past," said Md Monirul Islam, company secretary of Exim Bank.