BB eases rules for Power import payments

Business Report :

The Bangladesh Bank (BB) has relaxed regulations to make it easier for local banks to pay for imported electricity, a move aimed at ensuring uninterrupted power supply and easing pressure on energy importers.

In a circular issued on Monday, the central bank said authorised dealer (AD) banks can now send payments abroad for power purchases under government-approved cross-border agreements without seeking prior approval from the BB.

According to the circular, this policy is intended to streamline and accelerate payment procedures for electricity imports transmitted through the national grid under bilateral deals approved by the government.

However, the central bank also stressed that banks must continue to comply with foreign exchange rules, including Know Your Customer (KYC) requirements, anti-money laundering and counter-terrorism financing (AML/CFT) standards, and routine reporting obligations to the BB.

The directive further clarified that if power import transactions involve customs formalities, banks must follow the standard import payment procedures.

Officials said the new measure is part of a broader effort by the central bank to simplify foreign exchange transactions for essential imports, particularly in the power and energy sector.

In recent months, the BB has issued several circulars easing outward remittance rules to help reduce bureaucratic delays.

Earlier this year, it removed the need for prior approval for payment guarantees in power and energy imports, provided the deals were cleared by the relevant government authorities.