Banks asked to settle inward remittances in a day
Business Report :
Bangladesh Bank has instructed banks to ensure same-day or next-day credit of inward remittances to customer accounts, aiming to reduce delays and improve efficiency in cross-border payment processing.
The directive was issued through a circular yesterday and has taken immediate effect. However, banks have been allowed a transition period until 31 March 2026 to achieve full compliance with the new instructions.
Under the revised guidelines, authorised dealer (AD) banks must promptly notify customers through secure electronic channels upon receipt of inward remittance messages. Remittances received during banking hours are to be credited on the same business day, while those received after banking hours must be credited on the next business day.
Bangladesh Bank has advised banks to use straight-through processing (STP) or risk-based expedited processing methods to speed up transactions. Where essential information is available, beneficiary accounts may be credited even if some documentation or compliance checks remain pending, provided these requirements are completed afterwards.
In cases where post-credit review is not feasible, banks must conduct pre-credit verification and settle the transactions within three business days.
To further accelerate processing, the central bank has instructed banks to reduce dependence on end-of-day nostro account statements and instead rely on intraday credit confirmations. Banks have also been encouraged to strengthen reconciliation systems, with reconciliation intervals generally not exceeding 60 minutes.
The circular also emphasises enhanced payment tracking and transparency. Banks have been directed to use the Unique End-to-End Transaction Reference (UETR) to trace inward remittances from receipt to final credit.
In addition, banks have been asked to strengthen digital foreign exchange platforms, paving the way for the eventual discontinuation of Form C and Form C (ICT).
Business insiders welcomed the move, saying it would boost customer confidence and align Bangladesh’s remittance processing standards with global best practices. However, several bankers noted that operational challenges may arise during the transition period.