Foreign currency clearing through RTGS from Sept 4

The country’s commercial banks will conduct their foreign currency clearing activities through the Real-Time Gross Settlement (RTGS) of the central bank from September 4.

The Bangladesh Bank issued a notice on Sunday to this effect.

Currently, banks are conducting the clearing of the foreign demand drafts (FDDs) issued in foreign currencies under the foreign currency clearing arrangement of the BB.

The whole foreign currency (FC) clearing and settlement process is still manual and paper-based which require the physical movement of instruments and officials, resulting in higher transaction cost and inconvenience, said the central bank notice.

This problem prompted the BB to take decision for introducing FC clearing and settlement through the RTGS system.