Regulatory Alerts2025-11-11
Added
BRPD Circular Letter No. 24: Opening L/C and L/C Margin for Importing Essential Consumer Goods During Holy Ramadan
The document instructs scheduled banks operating in Bangladesh to maintain a minimum cash margin for opening letters of credit for specific essential consumer goods, including rice, wheat, onion, lentils, cooking oil, sugar, chickpeas, peas, spices, and dates, based on banker-customer relationships. This directive aims to facilitate imports and ensure supply during the upcoming Holy Ramadan. The instruction is issued under Section 45 of the Bank Company Act, 1991, takes immediate effect, and remains valid until March 31, 2026.
Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD Banking Regulation and Policy Department 11 November 2025
BRPD Circular Letter No. 24 Date: ------------------ 26 Kartik 1432
Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh
Dear Sir,
Reference is drawn to your attention to BRPD Circular Letter No. 41 dated 05 September 2024 and BRPD Circular Letter No. 47 dated 06 November 2024 regarding the opening of Letters of Credit (L/C) and maintenance of cash margin for importing essential consumer goods on the occasion of the Holy Ramadan month.
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Through the aforementioned BRPD Circular Letter No. 41/2024, instructions were given to maintain 100% cash margin for the opening of L/C for importing certain goods. Additionally, through BRPD Circular Letter No. 47/2024, instructions were given to maintain the cash margin rate on a minimum basis based on banker-customer relationships for importing certain essential consumer goods in light of the demand during the Holy Ramadan month, which was valid until 31 March 2025.
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Now, considering the increased demand for such consumer goods on the occasion of the upcoming Holy Ramadan month, instructions are given to maintain the reserved cash margin rate on a minimum basis based on banker-customer relationships for opening L/C for importing rice, wheat, onion, lentils, cooking oil, sugar, chickpeas, peas, spices, and dates, to facilitate the import of the aforementioned goods, maintain affordable prices, and ensure necessary supply.
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Furthermore, it is advised to give priority to opening L/C for importing the aforementioned goods to ensure their supply in the domestic market.
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These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.
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These instructions shall take immediate effect and remain valid until 31 March 2026.
Yours faithfully,
(Md. Bazlur Rahman Sarkar) Director (BRPD) Phone: 9530252