Bangladesh Bank on Tuesday simplified the payment process for electricity imports.
From now on, banks that transact foreign exchange under approved cross-border power purchase agreements will be able to send money abroad without separate permission from the central bank.
Bangladesh Bank issued a circular in this regard on the day.
The circular also said that this decision was taken to simplify the payment process for electricity imported through the national grid.
It will be applicable only under the bilateral power purchase agreements approved by the government.
Bangladesh Bank also said that banks will be able to send money to foreign suppliers against imported electricity subject to certain specified conditions.
At this time, they will have to strictly comply with foreign exchange regulations, customer verification (KYC), money laundering and terrorism financing prevention policies.
In addition, where customs formalities are applicable in the import of electricity, the money will have to be paid through the conventional import process.
At the same time, banks will have to submit regular reports of these transactions to Bangladesh Bank.
Concerned parties believe that this move by the central bank will make financial transactions for cross-border electricity imports easier and will help maintain continuity in energy supply.
