Bangladesh Bank has simplified the process for making payments for electricity imports. From now on, authorized dealer (AD) banks will be able to remit funds abroad under government-approved cross-border electricity purchase agreements without needing separate approval from the central bank.

A circular to this effect was issued on Tuesday (October 28) by the Foreign Exchange Policy Department of Bangladesh Bank.

According to the circular, this decision aims to simplify payment procedures for electricity imported through the national grid. The new rule will apply only to government-approved bilateral power purchase arrangements.

Under the new directive, banks may remit payments to foreign suppliers for imported electricity, provided certain conditions are met. However, banks must strictly comply with foreign exchange regulations, Know Your Customer (KYC) procedures, and anti–money laundering and counter-terrorism financing policies. Additionally, banks must regularly report such transactions to Bangladesh Bank.

The circular also noted that where customs or import duties apply to electricity imports, payments must still follow the standard import procedures.

Experts believe this initiative will make cross-border electricity import payments faster and more efficient.