B Mirror Report: Bangladesh Bank has abolished the Telegraphic Transfer (TT) discounting facility previously available to scheduled banks against liens on their current accounts maintained with the central bank.

The Banking Regulation and Policy Department of Bangladesh Bank issued a circular on Monday (August 3) announcing the decision.

TT discounting is a short-term liquidity facility that allowed commercial banks to borrow funds from the central bank by placing a lien on their current accounts to meet urgent cash requirements.

According to the circular, banks now have access to several effective sources of short-term funding for daily liquidity management, including the call money market, repo operations, the Standing Lending Facility (SLF), and interbank borrowing. As a result, Bangladesh Bank said there is no longer any need to continue the TT discounting facility.

The central bank also noted that the facility had seen very limited use in recent years. Consequently, the TT discounting facility for scheduled banks has been deemed discontinued with effect from July 1, 2026.

The directive was issued under Section 45 of the Bank Company Act, 1991, and all managing directors (MDs) and chief executive officers (CEOs) of scheduled banks have been instructed to implement the decision.