Bangladesh Bank (BB) has issued a landmark directive requiring commercial banks to credit inward remittances to customers’ accounts within the same or the very next working day. The instruction, issued via a circular on Thursday, is aimed at streamlining the remittance process and boosting the confidence of expatriates and exporters in the formal banking channel.
New Timeline for Fund Deposits
The central bank’s Foreign Exchange Policy Department mandated that Authorized Dealer (AD) banks must notify customers immediately via secure electronic channels upon receiving a remittance message.
The processing window is now strictly defined:
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Receipt during banking hours: The funds must be credited to the customer’s account on the same working day.
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Receipt after banking hours: The funds must be credited by the following working day.
While the directive is effective immediately, the central bank has granted banks until March 31, 2026, to fully align their systems and infrastructure with these new requirements.
Technological Upgrades: STP and UETR
To achieve this speed, the central bank has advised banks to adopt Straight-Through Processing (STP) or risk-based fast-track processing. If essential information is available, banks are encouraged to credit the funds first and complete secondary documentation later.
For cases where post-credit review is not possible, banks must complete the verification and settle the transaction within a maximum of three working days.
The circular also introduces a new layer of transparency:
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UETR: Banks must use a Unique End-to-End Transaction Reference (UETR) to track the remittance from the moment it is sent until it hits the customer’s account.
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Intraday Confirmation: Banks are instructed to rely on intraday credit confirmations rather than waiting for end-of-day Nostro account statements.
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Digital Platforms: Digital foreign exchange platforms are to be strengthened to eventually phase out the manual requirements of Form-C and Form-C (ICT).
Comparison of Processing Standards
| Feature | Old Practice (Typical) | New Directive (Effective Immediately) |
| Account Credit | Often 2–3 days or more | Same day / Next working day |
| Verification | Pre-credit documentation | STP/Post-credit review encouraged |
| Tracking | Limited transparency | Mandatory UETR tracking |
| Reconciliation | End-of-day statement | 60-minute reconciliation target |
Expert Reaction
Industry leaders have welcomed the move as a major step toward modernizing Bangladesh’s financial ecosystem. A senior official at an international bank operating in Dhaka noted that these reforms would significantly enhance trust among correspondent banks and strengthen Bangladesh’s reputation in the global payment network.
“By matching international standards like STP and intraday reconciliation, we are making the formal channel more attractive than the informal ‘Hundi’ market,” the official stated.
