The Bangladesh Bank has instructed commercial banks not to open a letter of credit (LC) without a lawfully renewed import registration certificate (IRC).
In a circular issued on Tuesday to this effect, the central bank said it has recently been noticed that some commercial banks are opening LCs without valid and up-to-date IRCs, which is leading to complications in giving duty facility on imports while unloading goods.
At the same time, delays in unloading of goods are hurting the businesses financially, which is hampering overall investment climate, the regulator added.
In order to overcome such a situation, the central bank has directed the banks to ensure valid and up-to-date IRC certification at the time of receiving the LC forms and before issuing a LC.
The Bangladesh Bank sent the directives to all its authorised dealer banks on Tuesday.