Bangladesh Bank has launched instant interbank foreign exchange transactions through an online Real-Time Gross Settlement (RTGS) system.
Banks mainly clear and settle in US dollars, British pounds, Euros, Canadian dollars and Japanese yen via RTGS.
Bangladesh Bank Governor Abdur Rauf Talukder officially inaugurated the program on Sunday, September 4.
Until now, five foreign currencies, including the dollar, the pound and the euro, were settled in a traditional transaction system where banks used paper documents and sent representatives to another bank for settlement.
Thanks to the implementation of this system, the management of the clearing in a foreign currency will be much easier because no representative of the bank will have to be physically present at the clearing house for checks and FDD.
“As a result, there is no more risk of damaged or lost cheques/FDDs and no more opportunities for fraudulent activities. On the other hand, customs clearance of FDDs which used to take a long time will now be settled instantly,” said said a press release. Release.
In RTGS system, the transaction limit in local currency is Tk1 lakh, however, in case of foreign currency, there is no limit which will increase the scope of transactions and the number of beneficiaries.
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