BRPD Circular Letter No. 23: LC margin for importing child food

Bangladesh Bank Chief Executive Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Banking Regulation and Policy Department 21 October 2025

BRPD Circular Letter No. 23 Date: ----------------- 05 Kartik 1432

Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh

Dear Sir,

Reference is made to BRPD Circular Letter No. 41 dated 05 September 2024 regarding the subject cited above.

2. Through the aforementioned circular letter, in the context of recent international economic instability and to maintain a more consolidated currency and credit management system in the country, instructions were issued in Paragraph 4 of the circular that a 100% cash margin must be maintained for establishing letters of credit for the import of the goods listed therein. Among these goods, 'non-cereal food or non-cereal food products' and 'processed food items and beverages such as canned food, chocolate, biscuits, juice, coffee, soft drinks, etc.' are included (Serial No. 11 and 12 of Paragraph 4). Recently, this office has been informed that some banks are imposing the mandatory 100% cash margin requirement on concerned importers for essential child food, considering it included among the aforementioned goods.

3. It is now clarified that essential child food is not included among the goods listed in Paragraph 4 of the aforementioned BRPD Circular Letter No. 41/2024. That is, the cash margin rate for establishing letters of credit for the import of child food shall be determined based on the bank-customer relationship.

4. This instruction shall take immediate effect.

5. This instruction is issued under the powers conferred by Section 29 of the Bank Company Act, 1991.

Yours faithfully,

(Md. Ala Uddin) Director (BRPD) Phone: 9530095