BRPD Circular Letter No. 08: L/C Margin and Commission on Import Financing for Essential Consumer Goods

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. Binongrob: ii.nn.org.bd 10 March 2022 BRPD Circular Letter No. 08 Date: ------------------- 25 Falgun 1428 Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding L/C Margin and Commission on Import Financing for Essential Consumer Goods. Drawing your attention to the subject matter, it is informed that the holy month of Ramadan and Eid-ul-Fitr are approaching. On the other hand, an upward trend in the prices of import-dependent essential consumer goods is observed in the market due to various uncontrollable reasons, including the post-COVID-19 pandemic situation. 2. In this situation, to prevent the upward trend in prices of essential consumer goods during the upcoming Ramadan, to keep commodity prices at a tolerable level, and to ensure adequate supply, you are instructed to follow the guidelines below for establishing import Letters of Credit (L/Cs) for edible oil, chickpeas, pulses, peas, onions, spices, dates, fruits, and sugar, among other essential consumer goods: (a) The margin rate for import L/Cs must be kept at a minimum level, and L/Cs can be opened with zero margin based on the banker-customer relationship; and (b) The commission for import L/Cs must be kept at the minimum possible level based on the banker-customer relationship. This instruction will be effective immediately and remain in force until 10 May 2022. This instruction is issued under the powers conferred by Section 45 of the Bank Company Act, 1991. Yours faithfully, (Maksuda Begum) General Manager Phone: 9530252