• Wednesday, Mar 29, 2023
  • Last Update : 09:54 am

BB issues directives to protect exporters

  • Published at 11:45 am July 14th, 2021
File photo: Trucks wait at Benapole land port, just outside of India’s Petrapole checkpost, waiting to be cleared Dhaka Tribune

Banks must ensure validity of the applicant bank and issuing bank in obtaining the loan through a third bank at the time of export

Banks will now have to cross check details meticulously during export, to protect exporters and prevent money laundering.

A central bank circular issued on Tuesday stated that authorized dealer (AD) banks must ensure validity of the applicant bank and issuing bank in obtaining the loan through a third bank at the time of export.

At the same time export documents should be sent directly to the applicant bank and issuing bank or through the bank having relationship with that bank.

In case of receipt of a transferred loan, it has been asked to confirm about the first beneficiary and the transferring bank including the bank or issuing bank applying for the loan.

Also Read - $51bn export target set for FY22

Besides, the banks have also been asked to abide by the foreign exchange transaction rules in issuing export documents and collecting prices.

BB has also asked ADs to conduct due diligence on importers’ banks that have been selected for the transactions under sales contracts and ensure the release of export documents by designated banks to importers and procedural arrangement of payment, as per the Guidelines for Foreign Exchange Transactions-2018.

The BB instruction also said the ADs have to take necessary measures to ensure fairness of contract between the importer's banks in conducting exports.

Such instructions have been given sporadically from time to time and the new circular was issued to remind the banks of all the previous instructions so that they follow them properly, the circular added.

Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail