Regulatory Alerts2024-11-06
Added
BRPD Circular Letter No. 47: Opening L/C and L/C Margin for Importing Essential Consumer Goods During Holy Ramadan
The document instructs scheduled banks in Bangladesh to maintain the minimum cash margin for opening Letters of Credit for specific essential consumer goods on a bank-customer relationship basis to facilitate imports during the upcoming Holy Ramadan. The regulated items include rice, wheat, onion, lentils, cooking oil, sugar, eggs, chickpeas, peas, spices, and dates. Banks are advised to prioritize the opening of these Letters of Credit to ensure market supply. These instructions are effective immediately and remain valid until March 31, 2025.
Bangladesh Bank Chief Controller Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD-Reg/Policy-47 Banking Regulation and Policy Department 06 November 2024
BRPD Circular Letter No. 47 Date: ------------------ 21 Kartik 1431
Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh
Dear Sir,
Reference is drawn to your attention regarding BRPD Circular Letter No. 41 dated 05 September 2024 and BRPD Circular Letter No. 05 dated 17 January 2024 on the subject of opening Letters of Credit and maintaining 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 Letters of Credit for the import of certain goods. Additionally, through BRPD Circular Letter No. 05/2024, instructions were given to maintain the cash margin rate on a bank-customer relationship basis for the import of certain essential consumer goods in view of the demand during the Holy Ramadan month, which was valid until 31 March 2024.
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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 minimum cash margin rate on a bank-customer relationship basis for the opening of Letters of Credit for the import of rice, wheat, onion, lentils, cooking oil, sugar, eggs, chickpeas, peas, spices, and dates, to facilitate the import of the aforementioned goods, keep prices affordable, and ensure necessary supply.
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Furthermore, advice is given to prioritize the opening of Letters of Credit to ensure the supply of the aforementioned goods 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 will take immediate effect and remain valid until 31 March 2025.
Yours faithfully,
(Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252