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Lesson 17 of 42 · Part E · Level 2 · Explained

Endorsing, sending and keeping e-documents

Going paperless raises practical questions. How does a bank endorse a document that has no back to sign? How does it send and track the set, follow up the money, keep safe records, and start the whole thing without tripping up?

E-5E-6E-7E-8E-9

In Lesson 16, Paperless export documents: what's allowed, Evelyn learned that her bank may send her collection documents to Hamburg electronically, as long as the banks agree first, and that title documents can go electronically only where the law at the other end accepts them. She was pleased. Tanvir was delighted. Then Tanvir asked a question that stopped everyone.

"Habib bhai, when you endorse a bill of lading, you sign on the back. But a file on a screen has no back. Where do you sign?"

Habib smiled. "Good question. And there are a few more after it: how we send the set, how we follow the money, how we keep the records. I know just the person." He invited Shirin, whom Evelyn had met at the training in Lesson 15: 35 years in banking, once head of trade and foreign exchange at a large bank, a documentary-credit specialist who now trains bankers.

Shirin laughed at Tanvir's question. "In my first year at the bank, endorsing meant a rubber stamp, a fountain pen and a steady hand. The idea hasn't changed: show clearly who passed the rights to whom. Only the pen has."

Para E-5New to the master circular

Endorsement of title documents

In plain words

To endorse a title document is to transfer the rights in it, traditionally by signing on the back. E-5 lets ADs endorse title documents in a practical and secure manner, and gives them different tools for different kinds of documents:

  • Electronic transport documents issued through recognised electronic platforms. The AD may endorse using digital signatures or platform-based endorsement tools. The audit trail that the platform generates counts as valid proof of endorsement. In other words, the platform's own record of who did what, and when, is the evidence.
  • Scanned or electronically submitted transport documents. Here there is no platform doing the work. The AD may issue a Digitally Signed Endorsement Certificate (DSEC) that refers to the relevant document. Think of it as a signed note that says, "We have endorsed this document," pinned firmly to that document.
  • SWIFT-based endorsement messages. These may also be used, but only where acceptable to the collecting bank.

Two things the circular leaves open: it doesn't list which platforms count as "recognised", and it doesn't give a set format for the DSEC.

At the desk

Evelyn's latest bill of lading was issued through an electronic platform. Habib endorses it with the platform's endorsement tool, and the platform's audit trail serves as proof. For another shipment, where the transport document was only scanned, he issues a DSEC that names that transport document. The Hamburg bank also accepts SWIFT messages, so Shirin notes that a SWIFT-based endorsement message would have been another option.

Key words
Endorsement
Signing on the back of a document to transfer rights to someone else.
Digital signature
An electronic signature, made with secure technology, that shows who signed a document.
DSEC
Digitally Signed Endorsement Certificate: a certificate, digitally signed by the AD, that endorses a scanned or electronically submitted transport document and refers to it.
Audit trail
A step-by-step record, kept by a system, of who did what and when.
Read the rule as written (Para E-5)

ADs may endorse title documents in a practical and secure manner. For electronic transport documents issued through recognized electronic platforms, ADs may endorse using digital signatures or platform-based endorsement tools, with platform-generated audit trails serving as valid proof of endorsement. For scanned or electronically submitted transport documents, ADs may issue a Digitally Signed Endorsement Certificate (DSEC) referencing the relevant document. Where acceptable to collecting banks, SWIFT-based endorsement messages may also be used.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part E, paragraph 5 (page 26). The original circular is the authority.

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Para E-6New to the master circular

Transmission to collecting/presenting banks

In plain words

Once endorsed, the set has to travel. E-6 says electronic document sets may be transmitted to collecting banks through channels that are:

  • secure, and
  • mutually acceptable to both banks.

While doing this, the AD must:

  • comply with the collection instructions, and
  • keep full traceability of dispatch, so it can always show what was sent, when, and to whom.

It is like sending a parcel with a tracking number instead of dropping it in a letterbox and hoping. If the buyer's bank ever says, "We never got it," the AD can show the record. The circular doesn't name any particular channel; it leaves the choice to the two banks, as long as the channel is secure and both accept it.

At the desk

Habib sends Evelyn's electronic set to the Hamburg collecting bank through the secure channel both banks agreed on. He checks that the set follows the collection instruction, then saves the dispatch record showing the time and the receiving bank. A week later, the Hamburg bank asks when the set left Dhaka; Habib answers in under a minute.

Key words
Collection instruction
The seller's bank's written instructions to the foreign bank, saying how to release the documents, who pays charges and what to do if the buyer refuses.
Traceability
Being able to show exactly what was sent, when, and to whom.
Read the rule as written (Para E-6)

Electronic document sets may be transmitted to collecting banks through secure and mutually acceptable channels, ensuring compliance with collection instructions and maintaining full traceability of dispatch.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part E, paragraph 6 (page 26). The original circular is the authority.

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Para E-7New to the master circular

Realization and monitoring

In plain words

Paperless documents don't mean paperless rules for the money. E-7 covers what happens after the collecting bank replies.

When the AD receives a payment advice or an acceptance advice from the collecting bank:

  • it deals with the export proceeds in line with the prevailing foreign exchange regulations, exactly as it would for a paper collection; and
  • it monitors DA bills for realisation within the prescribed timelines.

Why the extra eye on DA bills? Under DA, the buyer gets the documents now and only promises to pay later. An acceptance is good news, but it is not money in the account. The bank keeps watching until the money actually arrives.

E-7 doesn't set out the timelines itself; it refers to the prescribed timelines under the rules already in force.

At the desk

The Hamburg bank sends an acceptance advice: Evelyn's buyer has accepted a DA bill payable later. Tanvir cheers as if the money has arrived. Habib gently corrects him: under E-7, the bank now monitors the bill until it is realised within the prescribed timeline, and deals with the proceeds under the foreign exchange rules when they come.

Key words
Acceptance
The buyer's signature on a usance bill of exchange, promising to pay it on the maturity date.
Proceeds
The money received from a sale, here the payment for exported goods.
Realisation
Actually receiving the export money, so the bill is settled.
Read the rule as written (Para E-7)

Upon receipt of payment or acceptance advice from collecting banks, ADs shall deal with export proceeds in accordance with prevailing foreign exchange regulations and shall monitor DA bills for realization within prescribed timelines.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part E, paragraph 7 (page 26). The original circular is the authority.

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Para E-8New to the master circular

Record maintenance and security

In plain words

Paper files sit in steel cupboards. Electronic files need a safe home too. E-8 gives the AD three record-keeping duties and one encouragement:

  1. Keep a complete audit trail of electronic submissions and endorsements.
  2. Store electronic documents securely for the period required under existing regulations. E-8 doesn't state the period itself; it follows the regulations already in place.
  3. Verify digital signatures in line with the regulations in force on this subject.
  4. Align systems progressively with recognised information security standards. Note the softer words here: ADs are encouraged to do this, step by step. It is not a one-day deadline.

Why all this care? Because one day someone may ask, "Who endorsed this bill of lading, and when?" With paper, you would hunt through dusty files. With a good audit trail, the answer is a click away. Without one, the bank has nothing to show.

At the desk

An auditor visits Habib's branch and asks to see who endorsed Evelyn's electronic bill of lading in March and when the set was sent. Habib opens the audit trail and shows each step. The auditor also checks that the branch verified the digital signatures on incoming documents, as the regulations in force require, and that the files are stored securely.

Key words
Audit trail
A step-by-step record, kept by a system, of who did what and when.
Digital signature
An electronic signature, made with secure technology, that shows who signed a document.
Information security standards
Recognised sets of good practice for keeping computer systems and data safe.
Read the rule as written (Para E-8)

ADs shall maintain a complete audit trail of electronic submissions and endorsements, store electronic documents securely for the period required under existing regulations. ADs shall verify digital signatures in accordance with the regulations in force in this regard. ADs are encouraged to align their systems progressively with recognized information security standards.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part E, paragraph 8 (page 26). The original circular is the authority.

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Para E-9New to the master circular

Implementation

In plain words

How should a bank start? Not by switching everything overnight. E-9 says:

  • ADs may start electronic processing of export documents under documentary collections on a pilot basis, and expand the coverage gradually.
  • Adoption must follow a risk-based and phased approach, so the move is smooth while the bank keeps three things intact: operational integrity, legal enforceability and security of its processes.
  • ADs must inform Bangladesh Bank promptly when they begin piloting.

Think of learning to cycle. You start on a quiet lane with someone holding the seat, not on the main road in Motijheel at 9 am. A pilot lets the bank find the wobbles on a few deals before it rolls out to all of them.

The circular doesn't prescribe a form or format for informing Bangladesh Bank; it says only that the AD must inform it promptly.

At the desk

Habib's bank decides to start with a pilot: electronic collections for a few long-standing exporters, including Evelyn, with one collecting bank in Hamburg. Its head office informs Bangladesh Bank promptly that piloting has begun. After the first few months run smoothly, the bank plans to add more exporters and banks, step by step.

Key words
Pilot basis
Trying a new way of working first on a small scale, before using it widely.
Risk-based approach
Putting the most care where the risks are highest.
Read the rule as written (Para E-9)

ADs may commence electronic processing of export documents under Documentary Collection arrangements on a pilot basis and expand the coverage gradually. Adoption shall follow a risk-based and phased approach to ensure a smooth transition while maintaining operational integrity, legal enforceability, and security of processes. ADs shall inform Bangladesh Bank promptly the initiation of piloting activities.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part E, paragraph 9 (page 26). The original circular is the authority.

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Putting it together

So far: ADs may endorse electronic title documents with digital signatures or platform tools (the platform's audit trail is the proof), with a DSEC for scanned documents, or with SWIFT messages where the collecting bank accepts them. Sets travel through secure, mutually acceptable channels with full traceability, the proceeds follow the usual foreign exchange rules, and DA bills are watched until realised. ADs keep a complete audit trail, store documents securely, verify digital signatures, and start with a phased pilot, informing Bangladesh Bank promptly.

That completes Part E of the export room.

Next: Part F, a pilot framework for digital trade documents through approved trade corridors, starts in Lesson 18, Digital trade corridors: the pilot and its principles.

Check yourself

30 questions, in 3 sets of up to 10. Nobody sees your answers but you.

Set 1 of 3

1. How does E-5 say ADs may endorse title documents?
2. For electronic transport documents issued through recognised electronic platforms, how may ADs endorse them?
3. What serves as valid proof of endorsement for documents on a recognised electronic platform?
4. For scanned or electronically submitted transport documents, what may the AD issue?
5. True or false: under E-5, SWIFT-based endorsement messages may be used with any collecting bank, whether or not it accepts them.
6. Habib endorses Evelyn's platform-issued electronic bill of lading with the platform's tool. Tanvir asks whether a DSEC is needed as well, to prove the endorsement. What does E-5 say?
7. For one shipment, Evelyn's transport document is only a scanned copy. How may Habib endorse it under E-5?
8. The Hamburg collecting bank confirms that it accepts SWIFT-based endorsement messages. What may Habib do?
9. Through what kind of channels may electronic document sets be sent to collecting banks?
10. While sending an electronic set, what must the AD maintain under E-6?

Set 2 of 3

11. True or false: under E-6, the AD must make sure that the electronic transmission complies with the collection instructions.
12. Tanvir suggests sending the electronic set from his personal email because "it's faster". What does E-6 require?
13. The Hamburg bank asks when Evelyn's set was dispatched. Why can Habib answer quickly?
14. Upon receiving payment or acceptance advice from the collecting bank, how must the AD deal with the export proceeds?
15. Which bills does E-7 say the AD must monitor for realisation within prescribed timelines?
16. What triggers the AD's action under E-7?
17. True or false: because documents are sent electronically, the proceeds no longer need to follow the foreign exchange regulations.
18. The Hamburg bank sends an acceptance advice for Evelyn's DA bill. Tanvir thinks the job is done. What must Habib's bank still do?
19. What must the AD keep a complete audit trail of, under E-8?
20. For how long must electronic documents be stored securely?

Set 3 of 3

21. How must ADs verify digital signatures?
22. True or false: E-8 encourages ADs to align their systems progressively with recognised information security standards.
23. An auditor asks Habib who endorsed Evelyn's electronic bill of lading and when. What should Habib be able to show?
24. A colleague wants to delete old electronic export documents to free up server space, a month after payment. What does E-8 require?
25. An electronic document arrives at Habib's branch with a digital signature. What must the branch do with that signature?
26. How may ADs start electronic processing of export documents under documentary collections?
27. What approach must adoption follow under E-9?
28. Which three things does E-9 say the bank must keep intact during the transition?
29. True or false: ADs must inform Bangladesh Bank promptly when they begin piloting electronic processing.
30. Habib's bank starts electronic collections with a few exporters, including Evelyn. What must it do about Bangladesh Bank?
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