Written by The Banking Post
Bangladesh Bank has instructed banks to ensure same-day or next-day credit of inward remittances, aiming to reduce delays and improve efficiency in cross-border payment processing. The directive was issued through a circular on January 8, 2026, and takes effect immediately. However, banks have been given a transition period until March 31, 2026, to achieve full compliance.
Under the new instructions, Authorized Dealer banks are required to 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 are to be credited on the next business day.
Banks have been advised to use straight-through processing (STP) or risk-based expedited processing methods. In case of availability of essential information, beneficiary accounts may be credited even if some documentation or checks are pending, with remaining requirements completed afterward. In cases, where post credit review is not feasible, banks need to conduct pre-credit verification and settle the transactions within 3 business days.
To accelerate processing further, Bangladesh Bank has asked banks to reduce reliance on end-of-day nostro account statements and instead use intraday credit confirmations. Banks are also encouraged to enhance reconciliation systems, with reconciliation intervals generally not exceeding 60 minutes.
The circular emphasizes payment tracking and transparency, directing banks to use the Unique End-to-End Transaction Reference (UETR) for tracing inward remittances from receipt to final credit. Banks have been instructed to strengthen digital foreign exchange platforms, enabling the eventual discontinuation of Form C and Form C (ICT).
Business insiders welcomed the move, saying it would improve customer confidence and align remittance processing standards with global best practices. However, bankers noted operational challenges during the transition period.
Industry observers also highlighted that intraday confirmations and UETR-based tracking would improve transparency and reduce disputes in remittance settlement. ‘This will strengthen trust among correspondent banks and help improve Bangladesh’s reputation in the global payments network’, said a senior executive of an international bank operating in Dhaka.
