Bangladesh Bank has relaxed regulations for power import payments, allowing authorised dealer banks to make outward remittances for power purchases without seeking prior case-to-case approval from the central bank.
BB issued a circular in this regard on Tuesday.
BB officials said that the move aims to streamline and facilitate smooth payments for power imports transmitted through the national grid under bilateral agreements approved by the government.
The decision effectively decentralises the payment process, which was previously hindered by the requirement for central bank approval for each transaction exceeding standard limits.
It would ensure smoother and faster payments to foreign power suppliers under government-approved arrangements.
Under the new directive, banks can now directly remit funds for electricity transmitted through the national grid, provided a strict set of conditions is met.
These conditions require that the underlying power purchase agreement has full government authorisation, that there is a valid contract with the foreign entity, and that each payment is backed by authenticated invoices and a certificate from the relevant Bangladeshi agency confirming the physical receipt of power.
Furthermore, the circular mandates compliance with all tax regulations and adherence to standard financial security protocols, including know your customer and anti-money laundering standards.
This will prevent delays that could disrupt the smooth flow of electricity imports, which are crucial for the country鈥檚 energy security, BB officials said.
