BB issues directives to fast-track inward remittances

In a significant move to modernize the nation’s financial landscape, Bangladesh Bank (BB) has issued a new circular aimed at streamlining disbursement of inward remittances through enhancing operational efficiency. 

The central bank’s Foreign Exchange Policy Department today announced the changes, mandating that Authorized Dealers (ADs) — typically commercial banks — adopt faster processing methods and digital interfaces.

One of the most impactful changes is the requirement for timely processing and crediting of cross-border inward payments. Under the new guidelines, ADs are instructed to use Straight-Through Processing (STP) arrangements to credit beneficiaries' accounts promptly.

According to the circular, remittances received during banking hours must be credited on the same business day.

Transactions received after business hours or those that are recurring must be credited by the next business day.

To ensure speed is not hindered by administrative hurdles, the central bank has authorized ADs to credit the accounts even if some documents or checks are pending, provided that all essential information for the credit is available. Any remaining documentation can be handled through post-credit monitoring.
In a push toward full digitalization, Bangladesh Bank has announced that Form-C and Form-C (ICT) will be discontinued. Instead, ADs must establish secure digital interfaces that allow customers to submit required information and documents electronically. 

These digital platforms will enable customers to monitor their transaction status and provide electronic acknowledgments. Until these interfaces are fully operational, banks are directed to use existing digital channels to collect necessary remittance data.

To support the rapid timelines, banks are required to move away from relying on end-of-day statements. Instead, they must use intraday credit confirmations and perform nostro account reconciliations at intervals not exceeding 60 minutes.

Furthermore, the central bank has mandated the use of the Unique End-to-End Transaction Reference (UETR) for all inward remittances. This reference must be maintained through domestic inter-bank transfers, ensuring end-to-end traceability until the funds reach the ultimate beneficiary.

While rapidity is a priority, the circular maintains strict standards for due diligence. Pre-credit verification is still required for high-risk scenarios, such as transactions involving new customers or those with no transactional history, remittances originating from high-risk jurisdictions and transactions flagged by sanctions screening or monitoring systems.

In such complex cases, banks are required to prioritize processing and ensure settlement is completed at the earliest, with a maximum limit of three business days.

The central bank has granted a transition period until March 31, 2026, for banks to fully operationalise these frameworks. During this window, ADs are expected to implement the necessary STP arrangements, digital interfaces, and reconciliation systems to ensure effective compliance, reports BSS.