Regulatory Alerts2016-12-27
Added · Updated
FEPD Circular Letter No. 32: Regarding Policy for establishment of Drawing Arrangement between the Exchange House abroad and the Bank operating in Bangladesh
The document amends the security deposit requirements for establishing drawing arrangements with foreign exchange houses under the NDF (Non-Deliverable Forward) method. The maximum amount for a Bank Guarantee or Cash Deposit is reduced from BDT 25,000 to BDT 10,000, and the limit for Cash/Cheque is reduced from BDT 500,000 to BDT 200,000. It explicitly prohibits providing any overdraft facility to Money Transfer Organizations.
Foreign Exchange Policy Department Bangladesh Bank Head Office, Dhaka-1000. Ref No.: FEMPD(CD).147/2016-32 Circular Letter No.- FEPD(LDA)147/2016-32 Date: December 27, 2016 Poush 13, 1423 To, The Chief Executive/Principal Office of all Approved Dealers Banks engaged in Foreign Exchange Transactions.
Dear Sirs,
Regarding "Policy on Establishment of Drawing Arrangement between the Exchange House abroad and the Bank operating in Bangladesh".
Reference is drawn to your attention to the attached "Policy on Establishment of Drawing Arrangement between the Exchange House abroad and the Bank operating in Bangladesh" issued vide Circular Letter No.- FEPD(LDA-1)147/2007-1468 dated October 29, 2007, on the subject cited above.
With a view to facilitating the establishment of drawing arrangements with foreign exchange houses, the rate of security deposit to be maintained in case of establishing drawing arrangement through NDF (Non-Deliverable Forward) method as mentioned in Clause 4(b) of the policy has been re-determined as follows:
Type of Security Deposit Previous Amount Current Amount
- Bank Guarantee / Cash Deposit (BDT equivalent) Max: BDT 25,000/- Max: BDT 10,000/-
- Cash / Cheque BDT 5.00 Lakh BDT 2.00 Lakh
Provided that under no circumstances shall any overdraft facility be provided in favor of Money Transfer Organizations.
Kindly comply with the above instructions immediately and inform all concerned parties.
Yours faithfully, (Md. Shahidul Islam) Deputy General Manager Phone: 02-55665002-5/21184
More like this from BB
BB published 33 documents in the last 30 days. We email you each new one the day it's published.