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Bangladesh Bank has introduced a pilot programme to process letters of credit (LC) and import-export documents digitally, marking a major step towards paperless trade facilitation allowing importers and exporters to submit, transmit and verify documents digitally.
In a circular issued on Wednesday, the central bank said the initiative aims to modernise global trade operations by making them faster, more efficient and technology-driven.
Under the pilot programme, approved international trade corridors will facilitate the digital exchange and verification of trade documents for both import and export transactions. The system will operate under international frameworks such as the Uniform Rules for Collections (URC) and Uniform Customs and Practice for Documentary Credits (UCP), including their electronic versions.
The initiative also introduces the use of electronic transferable records, which will be legally recognised as valid alternatives to paper-based trade documents, provided they meet prescribed standards. The framework emphasises interoperability, technology neutrality, data security and decentralised verification through secure digital systems.
Authorised dealer (AD) banks willing to participate must obtain prior approval from Bangladesh Bank and submit detailed information on trade corridors, counterparties, transaction types and technical infrastructure.
The system will support electronic handling of key trade documents including invoices, transport documents and drafts. However, in cases where digital documentation is not legally recognised in a partner country, banks may still require paper-based documents.
The central bank has also directed participating institutions to ensure robust cybersecurity measures, including encryption, authentication and audit trails.
Bangladesh Bank said the pilot will be implemented in phases, with future expansion depending on performance evaluation and regulatory review. Existing foreign exchange regulations will remain in force during the pilot period.
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