Dhaka, Bangladesh (BBN) - The central bank has launched a pilot framework to facilitate the digital processing of trade documents under documentary collections and letters of credit (LCs), marking a major step toward modernising the country's cross-border trade operations.
Under the framework, trade documents can be submitted, transmitted and verified electronically 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 the Uniform Rules for Collections (URC), the Uniform Customs and Practice for Documentary Credits (UCP) and their electronic versions—eURC and eUCP.
Central bank officials said the framework introduces **Electronic Transferable Records (ETRs) as legally recognised alternatives to paper-based trade documents, subject to compliance with applicable legal and technical standards. It also emphasises interoperability, technology neutrality, data privacy and decentralised verification through secure digital mechanisms.
To participate in the pilot, authorised dealer (AD) banks will be required to obtain Bangladesh Bank approval by specifying the proposed trade corridors, counterparties, transaction types and technology arrangements.
The framework will support the electronic handling of key trade documents, including invoices, transport documents and drafts.
However, AD banks may continue to require physical documents in jurisdictions where electronic records are not legally recognised.
The framework also requires participating banks to implement robust security measures, including encryption, authentication and comprehensive audit trails to ensure the integrity and authenticity of digital trade documents.
According to the notification, the pilot programme will be implemented in phases, with any future expansion depending on its performance and the outcome of regulatory assessments.
Bankers and industry insiders believe the BB’s latest initiative will enhance the efficiency, transparency and resilience of Bangladesh's trade finance ecosystem while reducing processing time and operational costs in cross-border trade.
BBN/SSR/AD