leading university BBA 42 batch, section-c

3. Presented By
NAME ID
Aklima Yeasmin 1611010115
Fahim UL Haque 1611010120
Shahriar Ahmed Chowdhury 1611010123
Monisha Roy 1611010141
Monzura Sarker 1611010142
Fahmida Rahman Taiba 1611010149
Section-C, 6th Semester (42nd Batch)
Department of Business Administration
Leading University, Sylhet.

4. No charge for rice import LC now
• The central bank has issued a directive on opening Letter of
Credit (LC) for rice import with a zero balance in the
importers’ accounts.
• The notice stated that due to recent flood in haor areas,
heavy rainfall and natural disaster across the country, rice
market turned unstable, shooting up the price of staple food.
• “In the circumstances, LC margin has been reduced to zero
based on bankers-clients relations to facilitate rice import.”
• General Manager (Banking Regulations and Policy
Department) of Bangladesh Bank said as per the BRPD
circular issued on December 2, 2003, the LC margin ranged
from 0 to 100, which has been replaced with the new margin
that will remain effective till December 31 this year.
• Rice millers as well as dealers had to pay their loan within
30 days after they took the credit.
Published on 20 June 2017

5. Dhaka Bank launches LC management solution
• Dhaka Bank Limited recently launched
‘Dhaka Bank Trade Cloud’, an
automated and highly secured LC
management solution for its corporate
clients.
• Through this solution, a customer can
not only apply for LC (Letter of Credit)
digitally, but also submit documents,
receive advices/statements/SWIFT
messages, said a press release.
This faster and convenient service also allows real-time service tracking for the customers.
Mentionable that Dhaka Bank is the first local bank to introduce such service in Bangladesh.

6. RMG factory owners to enjoy 4-yr deferred LC payment
• Readymade garment factory owners are going to enjoy four-year
deferred letter of credit payment facility in importing capital
machinery and five-year repayment facilities for foreign loans in
place of existing one year.
• According to a recent decision of the Board of Investment and
Bangladesh Bank, the garment manufacturers who want to get
the opportunity of opening deferred LC for the period of three
years more, will have to submit applications to the BoI.
• The retrospective payment will be approved by the Foreign
Exchange Investment Department of Bangladesh Bank.
• the decision of Bangladesh Bank and BoI, the BGMEA issued a
notice to its members asking to apply to Bangladesh Bank and
BoI for getting the opportunity of opening differed LC payment
for four years.

7. Foreign exchange rules to see changes
• The government will soon amend foreign exchange regulations to
make those time-befitting as the old rules are not enough for the
current international trading system, a finance ministry official
said.
• On the introduction of factoring to export and import business, as
an alternative to letters of credit, Alam said the system will be "a
bit expensive, but risk-free".
Published on
Factoring is a transaction in which four factors -- importers, exporters, importing banks and exporting banks -- are
involved in the settlement of payment in international trade. By contrast, too many factors are involved in the LC
system, which delay a transaction.

9. Handling discrepant documents against LC
Discrepancy in LC documents is very familiar among bankers who work in LC
department. Import-export business is carried under documentary credit where
bank absolutely deals with documents. Payment made by bank against LC is
entirely based on the documents presented.
Documents against LC can hardly be prepared error-free in the practical world.
At the same time, bankers always try to ensure payment against LC documents
which are presented in accurate and correct order. However, perfect presentation
is almost nonexistent and therefore, various rules and regulations have been
developed in trade finance area of banking to determine discrepant documents
and compliant presentation
Published On April 27 , 2016

10. Rice and flour LC increased
In the last two months, opening of debt instruments (LC) and settlement rates on various products
increased. In this, traders have increased the amount of LC for import of rice and flour. Apart from
this, the import of capital equipment has also increased LC. All the information is available in the
relevant sources.
According to the data, the cost of LC opening in the first two months of the current fiscal year
(July-August) increased to 54.16 percent. On the other hand, settlement rates increased by 31.55
percent. During this time, LC has been opened with the highest amount of rice, flour and capital
equipment.
Recently, the duty for importing rice was reduced from 28 percent to 2 percent. Even the use of
jute sacks has been lifted.
Published on 5th October 2017

11. LC complexity create loss in business
Minor discrepancies in opening or making a
business lc may cause great harm to their
business. At the time of opening the LC, all the
information must be filled properly or else it is
very difficult to compensate for the loss of
business.
Speakers at the DCCI Business Institute (DBI) in
the training workshop under 'Understanding LC
Proceedings for Export and Import Operation'.
Published on 29 August 2017

12. Finally, Bangladesh Bank is flexible to open LC
Bangladesh Bank has imposed strictness on overseeing money laundering
and money laundering (LC), Bangladesh Bank Bangladesh Bank has closed
LC open till the time the LC Bill is coming to the country. But now it will be
able to open LC for 200 dollars, but the rest will be available. Bangladesh
Bank has issued circular for this today.
According to the report of foreign organizations, the use of banking channels
is a huge amount of money from Bangladesh every year in the name of
import-export. Bangladesh Bank has taken several steps for preventing
trafficking for several years. Opening of LCs, the activities related to
payment of payment and bringing the goods to the country, through the
Dashboard, the Bangladesh Bank monitored by the Bangladesh Bank. In the
import of the product, the bank has to settle it within 4 months of its opening.
When the product is in the country, the C & F agent of the importer has
announced the amount of dollars the product has been brought. This is called
the Bill of Entry. At the time of the opening of the LC in the bill of entry and
after the purchase of the product, the price shown will be the same. If oddly
enough, it is shown owing. If the arrears exceed 4 months, the LC can not be
opened again without the approval of the Bangladesh Bank.
Published on 19 November 2017

13. E-LC launches to stop tax evasion and money laundering
All information on importing the goods has been
automated. For this, the electronic letter of credit or LC
(E-LC) has been introduced on Jan 27.
Bangladesh Bank and National Board of Revenue (NBR)
jointly launched this system. Both organizations say that
tax evasion will be reduced, money laundering will be
prevented and it will take less time to get goods from
abroad.
Bangladesh Bank spokesman and executive director
Mahfuzur Rahman said in the first light, "With the
introduction of E-LC only, it will not take less time to
complete the import-export activities, it will reduce tax
evasion and also help in preventing money laundering.
Published on 9 February 2015

14. In Three months the import of rice, LC increased to 185 times
In the first three months of the current fiscal year, 93 crores 5 million
dollars (LC) openings for rice import were opened.
This figure is 185 times or 18392 percent more than the same period
last year.
During the first three months of the last fiscal year, only 5 million 30
thousand dollars of LC was opened for rice import during July-
September.
After two-point floods, the government is increasing the import of
rice after both the government and the private sector started importing
rice after the government reduced the duty to avoid food crisis.
According to the information released on the Bangladesh Bank
Tuesday, it has been found that in the first three months (July-
September) of the fiscal year 2017-18, a total of Tk 477.3 million
(14.70 billion) LCs have been opened for import of various goods.
36.49 percent more than the same period last year.
Published on 07 November 2017

15. Back to Back LC increased double, hints of export growth
According to the Bangladesh Bank, the outgoing opening year was opened in December of 1044.16 million dollars. It has
been settled for 630 decimal 70 million dollars. 527.78 million dollars in 2015 This time it was settled at 541.13 million
dollars. In the outgoing year, LC increased by 515.01 million to one million dollars compared to the previous year. Decision
increased to 89.65 million dollars. Faruk Hasan, the Vice President of Ready-made Garment Ready and Exporters
Association (WC), thinks that the matter is likely to increase the export of imported goods in February and March. He said
the back-to-back LC can be open for two reasons. Firstly, the demand side increased due to the favorable export of imported
export. For this, the back-to-bank LC has increased open against the export of imported. Second: Pending LC in the
previous month will be open in December.
Published on 24th January 2017