Banks will no longer be required to take permission from the Bangladesh Bank to process import payments for internet bandwidth and related services.

The central bank issued a circular allowing the banks to make the payment abroad without its permission yesterday.

As per the circular, banks must obtain applications from the respective importers with some required documents, such as valid licences, copies of agreements with related parties, and a copy of regulatory approval from the Bangladesh Telecommunication Regulatory Commission (BTRC).

The bank will collect documents as well, including relevant invoices and proof of required tax payments. The bank will also collect an undertaking from the applicant, stating that in case of wrong or excess payment, the money will be repatriated to the country.

Business insiders hailed the move, saying it would ease the process of bandwidth and related service imports.

In a separate circular yesterday, the BB allowed banks to issue guarantees on behalf of suppliers in Bangladesh in favour of international agencies inviting tenders for supply of goods and services.

Also, banks will not require permission from the central bank for this.

Banks will also be able to issue guarantees against letters of credit, purchase/sale contracts, work orders or advance payments on behalf of resident exporters or sub-contractors.

This will ease business transactions and help promote exports and inward remittances against local delivery on behalf of foreign contractors, said an official of the central bank.