Bangladesh Bank recently introduced a pilot framework for digital processing of trade documents for export and import transactions.
The pilot will cover transactions conducted through documentary collections and letters of credit across approved trade corridors.
The framework allows banks to process electronic commercial invoices, transport documents and bills of exchange through secure digital platforms.
The pilot, to be implemented in phases, will cover transactions conducted through documentary collections and letters of credit (LCs) across approved trade corridors, according to domestic media outlets.
It will apply to export and import transactions governed by internationally recognised rules, including the Uniform Rules for Collections, Electronic Uniform Rules for Collections, Uniform Customs and Practice for Documentary Credits and Electronic Uniform Customs and Practice.
The framework also facilitates the use of electronic transferable records, enabling trade documents to be issued, transferred and managed digitally, while supporting trade finance activities involving electronic documentation within approved pilot arrangements.
The framework is built on five principles: interoperability among different systems, technology neutrality, decentralised verification of document authenticity through cryptographic mechanisms, protection of data privacy, and legal equivalence between electronic and paper-based trade documents.
To participate in the pilot, authorised dealer banks must obtain the central bank’s concurrence in principle by submitting details of the proposed trade corridors, counterparty institutions, transaction types and risk management arrangements.
The framework allows banks to process electronic commercial invoices, transport documents, including electronic bills of lading, and bills of exchange through secure digital platforms using digital signatures and authenticated interbank messaging.
Fibre2Fashion News Desk (DS)
