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Lesson 32 of 42 · Part L · Level 2 · Explained

Inward remittances: telling the customer and crediting on time

How banks must tell customers quickly when money arrives from abroad, credit it on the same or next business day, finish some checks after crediting, and still settle the riskier cases within 3 business days.

L-1L-2

In Lesson 31, Freelancers: cards, wallets, the ERQ and the rules that stay, Enzo learned how much of his earnings he may keep in dollars, how long a client may make him wait, and why his cousin's digital coin plan was a danger, not a genius idea. Part K of the export room ended there.

Now Enzo has a new complaint. He walks up to Eliana's export desk holding his phone like evidence. "My client in Canada says he paid me last night. My phone said nothing. My account says nothing. Where is my money? Having tea with someone?"

Behind him stands Nabila, owner of the Dhaka software firm. She has her own question. "A new client sent my firm its first big payment. The bank says it needs to check a few things first. Fair enough. But how long is 'a few things'?"

Eliana smiles. "Two good questions, and the right person is in the building today." Her branch's training session has a guest: Shirin, 35 years in banking, once head of trade and foreign exchange at a large bank, a documentary-credit specialist who now trains bankers. Shirin listens to both stories and laughs. "Money from abroad should not wait in the corridor like a visitor without an appointment. Part L of the circular says so. Let's see how." This lesson covers L-1 and L-2, the start of Part L.

Para L-1New to the master circular

Streamlining the disposal of inward remittances

In plain words

L-1 opens Part L with a quick map, then a promise.

The map. Money from abroad reaches a bank by different roads, and each road already has rules in this circular and in later circulars:

  1. Export proceeds handled through EXP form formalities, including e-commerce exports without an EXP form;
  2. Export money received in advance, brought home under what L-1 calls the Advance Remittance Voucher (ARV) procedures;
  3. Other inward remittances, that is, not export money and not wage remittances, handled through Form-C, including the cases where Form-C is not required.

For all of these, ADs must dispose of the transactions in line with the regulatory instructions that apply. "Dispose of" is bank language. It means handling a payment from start to finish: checking it, completing the paperwork and crediting it.

The promise. To streamline this work and make it more efficient, ADs shall ensure timely processing and crediting of cross-border inward payment receipts, following the instructions in Part L.

So L-1 does not throw away the EXP and ARV rules you met in earlier lessons. It adds speed on top of them. Form-C is the one change to watch: later in Part L, L-6 says Form-C and Form-C (ICT) stand discontinued (Lesson 33). Think of a rickshaw that now takes the flyover: same passenger, same destination, fewer traffic jams.

At the desk

On Monday morning, Eliana's queue holds three inward payments: proceeds for a knitwear exporter's shipment made against an EXP form, an advance from a buyer for a shipment not yet made, and a refund of an overpaid conference fee from an organiser abroad. Shirin sorts them with her: the first follows the EXP formalities, the second the ARV procedures, and the third the Form-C route. "Three roads, three rule books," she says. "Part L just asks you to drive each road without needless stops."

Key words
Inward remittance
Money sent into Bangladesh from abroad to a person or firm here, such as a foreign client's payment to a freelancer.
EXP form
The export declaration form. Every export, unless exempt, must have one.
Form-C
The declaration form (Appendix-11) that the beneficiary of an inward remittance fills in online; for ICT-related services, a separate Form-C (ICT) (Appendix-12) is used.
Disposal of a remittance
Handling an inward payment from start to finish: checking it, completing the paperwork and crediting it.
Read the rule as written (Para L-1)

In terms of the provisions of this circular and subsequent circulars regarding (i) disposal of export proceeds through EXP Form formalities, including e-Commerce exports without EXP Form, (ii) repatriation of export proceeds received in advance under Advance Remittance Voucher (ARV) procedures, and (iii) disposal of other inward remittances (excluding export and wage remittances) through Form-C, including cases where Form-C is not required, ADs are required to dispose of such transactions in compliance with the applicable regulatory instructions.

To streamline the disposal of inward remittances and enhance operational efficiency, ADs shall ensure timely processing and crediting of cross-border inward payment receipts, subject to observance of the instructions set out herein.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part L, paragraph 1 (page 45). The original circular is the authority.

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Para L-2New to the master circular

Customer notification, processing and timely crediting

In plain words

L-2 is the heart of Part L. It follows a payment from the moment its message arrives to the moment the money lands.

(1) Tell the customer. When an inward remittance message arrives, the AD must notify the customer promptly through secure electronic channels. If the message arrives after banking transaction hours, the customer is told at the beginning of the next business day.

(2) Credit quickly. Subject to regulatory compliance and risk assessment, ADs credit inward remittances promptly through straight-through processing (STP). They take into account the customer profile, the value and frequency of transactions, the type of transaction, and the country/counterparty risk. Where STP is not running, ADs use risk-based expedited processing instead. Once processing is done, the timelines are:

  • received during banking transaction hours: credit on the same business day;
  • received after those hours: credit on the next business day;
  • recurring transactions follow the same timelines.

(3) The condition. These timelines apply where all required transaction details or prior documentation are available.

(4) Credit first, tidy up later. If all the essential information for crediting is there, the AD may credit the account even if some documents or checks are still pending. These are finished later, in routine post-credit review and monitoring, without delaying the credit.

(5) When to check first. If post-credit review is not workable because extra due diligence, regulatory checks or documents are needed, the AD does pre-credit verification. The circular lists these situations, "including but not limited to":

  • new customers, or customers with no recent transaction history;
  • money coming from, or routed through, jurisdictions classified as high-risk under the applicable guidelines;
  • incomplete or inconsistent information about the stated purpose or the underlying deal;
  • remittances subject to specific regulatory requirements or approvals;
  • transactions flagged by sanctions screening, transaction monitoring or manual review.

Even then, no parking. ADs must identify such cases immediately on receipt, give them priority, and complete settlement at the earliest practicable time, not exceeding 3 business days. A daily follow-up mechanism tracks each case until it is resolved.

L-2 does not define "banking transaction hours", nor list exactly which details count as "essential".

At the desk

Enzo's Canadian client paid after banking transaction hours, so Shirin explains that Eliana's bank must tell Enzo through a secure electronic channel at the beginning of the next business day and credit him that day. Nabila's case is different: her firm's payment comes from a brand-new client and is routed through a jurisdiction classified as high-risk, so it needs pre-credit verification. Eliana marks it on receipt, gives it priority, and adds it to her daily follow-up list. "Checks, yes," says Shirin. "But settled at the earliest practicable time, and never beyond 3 business days."

Key words
Straight-through processing (STP)
Handling a payment automatically from start to finish, with no manual stops, so the money reaches the account quickly.
Business day
A day on which banks are open for business.
Post-credit review
Checks and documents a bank completes after it has already credited the money to the customer's account.
Pre-credit verification
Checks a bank must complete before it credits the money, used for riskier or incomplete cases.
Read the rule as written (Para L-2)

(1) ADs shall notify customers promptly, through secure electronic channels, upon receipt of inward remittance messages. Messages received after close of banking transaction hours shall be notified at the beginning of the next business day.

(2) Subject to regulatory compliance and risk assessment, ADs shall promptly credit inward remittances to beneficiaries' accounts through straight-through processing (STP) arrangements, taking into account the customer profile, transaction value and frequency, transaction type, and country/counterparty risk. Where STP arrangements are not operational, ADs shall apply risk-based expedited processing so as to facilitate timely credit. Upon completion of processing, ADs shall credit inward remittances in line with the following timelines:

(a) Inward remittances received during banking transaction hours shall be credited on the same business day; those received after banking transaction hours shall be credited on the next business day.

(b) Recurring transactions shall follow the same timelines.

(3) The above timelines shall apply, where all required transaction details or prior documentation are available.

(4) Where all essential information for crediting is available, ADs may credit the beneficiaries' accounts even if some documents or checks are pending. Remaining items shall be completed later as part of routine post-credit review and monitoring, without delaying the credit.

(5) Where effective post-credit review and monitoring is not feasible due to the requirement for additional due diligence, regulatory checks, or documentation, ADs shall undertake pre-credit verification in the following situation, including but not limited to:

(a) Inward remittances involving new customers or customers with no recent transactional history;

(b) Transactions originating from, or routed through, jurisdictions classified as high-risk in accordance with applicable guidelines;

(c) Transactions with incomplete, or inconsistent information relating to the stated purpose or the underlying transaction;

(d) Remittances subject to specific regulatory requirements, or approvals; and

(e) Transactions flagged by sanctions screening systems, transaction monitoring systems, or manual review. ADs shall identify such cases immediately upon receipt of the inward remittance, prioritize their processing without undue delay, and complete settlement at the earliest practicable time, not exceeding 3 business days. ADs shall maintain a daily follow-up mechanism to monitor progress and ensure timely resolution of such cases.

Source: Bangladesh Bank, FEPD-1 Circular No. 26, 30 July 2026, Part L, paragraph 2 (page 45). The original circular is the authority.

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Putting it together

So far: L-1 points to the existing rules for each kind of inward payment (EXP form formalities, ARV procedures and Form-C, which L-6 later says stands discontinued) and asks ADs to process and credit cross-border receipts on time. Banks must tell customers promptly through secure electronic channels, credit through STP or risk-based expedited processing, and pay on the same business day (or the next business day if the money arrives after hours) when the required details are available, finishing any pending documents in post-credit review. Riskier cases get pre-credit verification, but must still be settled at the earliest practicable time, within 3 business days, with daily follow-up.

Next: Lesson 33, Tracking payments, bank-to-bank transfers and digital help, covers the rest of Part L.

Check yourself

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

Set 1 of 3

1. Which three groups of transactions does L-1 name as already having their own disposal rules?
2. Under L-1, which remittances are excluded from the 'other inward remittances' handled through Form-C?
3. To streamline the disposal of inward remittances, what does L-1 ask ADs to ensure?
4. True or false: L-1 replaces the EXP form, ARV and Form-C rules with one single new procedure.
5. Where do e-commerce exports without an EXP form sit in L-1's list?
6. Desk case: a buyer abroad pays a garment exporter in advance, before the goods are shipped. Under which procedures does L-1 say this money is repatriated?
7. Desk case: a customer receives a refund of an overpaid conference fee from an organiser abroad. It is neither export money nor a wage remittance. How does L-1 describe its handling?
8. In L-1, what does it mean for an AD to 'dispose of' an inward remittance?
9. How must ADs notify customers when an inward remittance message arrives?
10. An inward remittance message reaches the bank after the close of banking transaction hours. When must the customer be notified?

Set 2 of 3

11. True or false: under L-2, recurring transactions follow the same crediting timelines as other inward remittances.
12. Once processing is complete, when must an inward remittance received during banking transaction hours be credited?
13. Once processing is complete, when must an inward remittance received after banking transaction hours be credited?
14. Which of these is NOT among the factors L-2 asks ADs to take into account for STP crediting?
15. Desk case: Eliana's bank's STP system is not operational for the week. A batch of inward remittances arrives. What does L-2 expect?
16. Under L-2(3), when do the same-day and next-day crediting timelines apply?
17. True or false: under L-2(4), an AD may credit a beneficiary's account even if some documents or checks are pending, as long as all essential information for crediting is available.
18. Under L-2(4), how are pending documents or checks completed after the account is credited?
19. Which of these is NOT one of the situations L-2(5) lists for pre-credit verification?
20. For cases that need pre-credit verification, what is the outer limit for completing settlement?

Set 3 of 3

21. True or false: the list of pre-credit verification situations in L-2(5) is complete, so no other case can need checks before crediting.
22. What follow-up mechanism must ADs keep for cases needing pre-credit verification?
23. True or false: under L-2, an AD may hold a remittance flagged by its sanctions screening system until the end of the month, as long as it finishes the checks.
24. Desk case: at 11 in the morning, during banking transaction hours, a USD 600 payment for a logo arrives for Enzo, with all required details. STP is working and processing is complete. When should Enzo's account be credited?
25. Desk case: Enzo's client sends a payment whose message reaches the bank at 10 at night, after banking transaction hours. All details are available. What should Eliana's bank do?
26. Desk case: a person who has just opened an account, with no transaction history, receives a large inward remittance. Which approach does L-2 point to?
27. Desk case: Nabila's firm receives a payment routed through a jurisdiction classified as high-risk under the applicable guidelines. What should Eliana do on receipt?
28. Desk case: Nabila's long-time client pays the same monthly support fee every month. Which crediting timelines apply?
29. Desk case: a payment for Enzo has all the essential information for crediting, but one supporting document copy is still on its way. What does L-2 allow?
30. Desk case: the bank's sanctions screening system flags a possible name match on a payment for Enzo. What is the right handling under L-2?
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