Written by The Banking Post
Bangladesh Bank has allowed the electronic presentation and processing of export documents under Documentary Collection arrangements, marking a major step toward digitising trade procedures.
Under the new facility, authorised dealer (AD) banks can handle export documents through secure bank-to-bank electronic channels for both Documents against Payment (DP) and Documents against Acceptance (DA). The system will follow the Uniform Rules for Collections (URC 522) and its Supplement for Electronic Presentation (eURC), subject to compliance with prescribed guidelines.
The central bank issued a notification to this effect on Tuesday.
According to officials, electronic processing will be based on mutual agreements between local and overseas banks, including consensus on document formats and the place of presentation. Export sales contracts must also clearly state that documentary collections will be processed electronically under eURC.
The notification said all documents may be presented electronically where Electronic Transferable Records are legally recognised. Where such records are not permitted, title or transferable documents must be submitted physically, while other supporting documents may still be sent electronically. In these cases, banks may also issue authenticated electronic copies.
Bangladesh Bank has further allowed digital endorsement of title documents through recognised electronic platforms, digital signatures, Digitally Signed Endorsement Certificates, or SWIFT-based messages. AD banks will be responsible for ensuring secure transmission, proper record-keeping and verification of digital signatures.
“ADs may implement the system on a pilot basis using a phased, risk-based approach and must inform the central bank when initiating pilot operations,” a senior central bank official said.
