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The central bank has launched a pilot framework to enable digital processing of trade documents under documentary collections and letters of credit (LCs), aiming to modernise cross-border trade operations.
The framework will allow electronic submission, transmission, and verification of trade documents across approved international trade corridors, according to a notification issued by the Bangladesh Bank (BB) on Wednesday.
The initiative covers both export and import transactions governed by Uniform Rules for Collections (URC), Uniform Customs and Practice for Documentary Credits (UCP) and their electronic versions (eURC and eUCP).
The central bank officials, however, said the framework introduces the use of Electronic Transferable Records (ETRs) as legally reliable alternatives to paper documents, subject to compliance with applicable standards.
It emphasizes interoperability, technology neutrality, data privacy, and decentralized verification using secure digital mechanisms, they added.
Under the framework, authorised dealer (AD) banks need to seek the BB’s approval to participate in the pilot by specifying trade corridors, counterparties, transaction types, and technology arrangements.
The system will support electronic handling of documents such as invoices, transport documents, and draft.
While electronic processing will be encouraged, AD banks may still require physical documents in jurisdictions where digital records are not legally recognized, the officials said, adding that the framework also mandates strong security features, including encryption, authentication, and audit trails.
The pilot will be implemented in phases, with future expansion depending on performance and regulatory assessment, the central bank in its notification.