BB launches pilot for digital trade documents

Bangladesh 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.

In a circular issued yesterday, the central bank said the framework will allow electronic submission, transmission, and verification of trade documents across approved international trade corridors.

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The initiative covers both export and import transactions governed by Uniform Rules for Collections (URC), Uniform Customs and Practice (UCP), and their electronic versions -- eURC and eUCP.

The framework introduces the use of electronic transferable records as legally reliable alternatives to paper documents, subject to compliance with applicable standards.

It emphasises interoperability, technology neutrality, data privacy, and decentralised verification using secure digital mechanisms.

Authorised dealer banks need to seek Bangladesh Bank’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 drafts.

While electronic processing will be encouraged, authorised dealer banks may still require physical documents in jurisdictions where digital records are not legally recognised. 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 circular noted.

(!-- Bodymatter --)