Banks asked to settle inward remittances in a day

Bangladesh Bank (BB) has instructed banks to credit inward remittances to beneficiaries' accounts on the same day or the next business day in order to reduce delays and improve efficiency in cross-border payment processing.

The central bank issued a circular in this regard today, which takes immediate effect. However, banks have been given a transition period until March 31, 2026, to fully comply with the new instructions.

Under the circular, banks must promptly notify customers through secure electronic channels once an inward remittance message is received.

Remittances received during banking hours must be credited on the same business day, while those received after banking hours must be credited on the next business day.

To speed up processing, banks have been advised to adopt straight-through processing (STP) or risk-based expedited processing methods.

Where essential information is available, beneficiary accounts may be credited even if some documentation or compliance checks are pending, with the remaining requirements to be completed afterwards, according to the circular.

If post-credit review is not feasible, banks will be required to complete pre-credit verification and settle the transactions within three business days.

The banking regulator has also directed banks to reduce reliance on end-of-day nostro account statements and instead use intraday credit confirmations to accelerate settlement.

Banks have been encouraged to strengthen their reconciliation systems, with reconciliation intervals generally not exceeding 60 minutes.

The circular further stressed the importance of payment tracking and transparency, instructing banks to use the Unique End-to-End Transaction Reference to trace inward remittances from receipt to final credit