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Dhaka, July 13 – Bangladesh Bank on Sunday issued a fresh directive requiring all banks to follow international rules when recording import-export transactions under letters of credit and other sales contracts.

The circular makes it compulsory for banks to apply the Uniform Rules for Collections (URC) when handling transactions via the documentary collection method. Previously, the Uniform Customs and Practice (UCP) governed only LC-based transactions; under the new guideline, URC coverage extends to sales contract-based collections as well.

According to the directive, commercial trade can be conducted through three legitimate methods:

• Advance payment
• Documentary collection
• Open account

In every case, banks must adhere strictly to existing import-export policies and foreign exchange management regulations.

Under documentary collection, the exporter’s bank sends shipment documents to the importer’s bank. The documents are released to the importer only against payment or a commitment to pay under predefined terms. Banks act solely as intermediaries and provide no financial guarantees.

Bankers and trade stakeholders have welcomed the move, calling it both timely and effective. They expect clearer transaction processes, enhanced payment security, and greater operational efficiency in international trade following the mandatory adoption of UCP for LCs and URC for contract-based collections.