BRPD Circular Letter No. 10: L/C Margin on Import Financing

Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. Ref No.: BRPD Circular Letter No. 10 Date: 11 April 2022 BRPD Circular Letter No. 10 Date: ------------------- 28 Chitra 1428 Managing Director / Chief Executive All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding the maintenance of cash margin in the context of establishing import letters of credit.

1. Reference is invited to BRPD Circular No. 23, dated 02 December 2003, on the subject cited above.
2. It is hereby directed that the margin rate shall be determined on a bank-customer relationship basis for all types of import letters of credit through the aforementioned circular.
3. In view of the current international trade scenario and to ensure the smooth operation of the monetary and credit management program, you are hereby directed to maintain a minimum cash margin of 25 percent for the establishment of letters of credit against the import of all goods, excluding infant food, fuel, other essential food items, life-saving drugs, local and export-oriented industries, and the agriculture sector.
4. This directive shall take immediate effect and remain valid until further orders.
5. This directive is issued under the powers conferred by Section 45 of the Bank Company Act, 1991. Yours faithfully,

(Maksuda Begum) Deputy General Manager Phone: 9530252