Regulatory Alerts2025-04-13
Added
FEOD Circular Letter No. 1: Payment of Overdue Accepted Bill (Foreign or local)
The Foreign Exchange Operations Department of Bangladesh Bank mandates approved dealer banks to implement detailed monitoring plans for overdue accepted bills, including branch-level performance evaluations and specific oversight for branches with high unpaid amounts. Banks are required to notify suppliers' banks if bills are non-payable due to legal cases and to submit monthly reports via the Core Banking System. These instructions, issued under the Foreign Exchange Regulation Act, 1947 and the Bank Company Act, 1991, take immediate effect to ensure timely payment and protect the banking system's reputation.
Foreign Exchange Operations Department Bangladesh Bank Head Office Dhaka. Ref. No. FEOD-2025 30 Chaitra, 1431 FEOD Circular Letter No.-01 Date: ------------------- 13 April, 2025
To: All Approved Dealer Banks engaged in Foreign Currency Transactions Head Office / Principal Office.
Dear Sir,
Subject: Payment of Overdue Accepted Bill (Foreign or local).
Reference is made to the instructions issued vide BEPD Circular No. 2-2018, Volume-01, Chapter-07, Para-34(A); BRPD Circular No. 06/2014; FE Circular Letter No. 23/2020; FE Circular Letter No. 38/2022; and FE Circular No. 30/2024 regarding the subject cited above.
- Failure to pay the bill value on time against imports damages the reputation of the country's banking system; and considering that it increases the cost of foreign trade and disrupts the favorable environment, banks shall take the following measures to ensure the prompt payment of overdue accepted bills (Foreign or local):
a. Banks shall formulate a comprehensive plan incorporating detailed monitoring (case-pending, attachment-related, large industrial establishments, etc. based special monitoring);
b. In the detailed monitoring, branch-based (where applicable) performance evaluation shall be conducted; and special monitoring measures shall be initiated in those branches where the amount of overdue unpaid accepted bills (Foreign or local) is high;
c. If any bill is not payable due to a case-pending status, the supplier's bank shall be informed; and
d. In the submission of monthly reports of overdue accepted bills (Foreign or local), information shall be sent through the Core Banking System (CBS) verification.
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Information regarding all bills (Foreign or local) submitted at the branch, discrepancies provided (if any), and bill value payment details shall be preserved and sent to the relevant department of the Head Office on a monthly basis.
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These instructions are issued under the powers conferred by Section 20(3) of the Foreign Exchange Regulation Act, 1947 and Section 45(1)(d) of the Bank Company Act, 1991. The revised instructions shall take immediate effect.
Kindly inform all concerned parties regarding this matter.
Yours faithfully,
(Kamal Hossain) Director (FEOD) Phone: 9530127