Bangladesh Bank lowers cash margin for eco-friendly car import LCs
The directive will take effect from 1 February
The Bangladesh Bank has announced a reduction in the cash margin requirement for opening Letters of Credit (LCs) for eco-friendly car imports, which takes effect from 1 February.
The central bank issued the directive today under Section 29 of the Bank Companies Act, 1991.
According to which, the previous requirement has been updated, as outlined in BPRD Circular Letter 41, which had mandated a 100% cash margin for LCs for the import of sedans, SUVs and MPVs.
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From now on, a minimum 50% cash margin will be required to establish LCs for these vehicles.
Fully electric and hybrid vehicles will now avail special consideration, as per the revised policy.
The cash margin for the eco-friendly vehicles will be determined based on the banker-customer relationship, reflecting a global shift towards energy-efficient and sustainable transportation.
The decision was taken with the aim to promote environmentally friendly alternatives, reduce carbon emissions and improve the Air Quality Index in the country.
