Dhaka, June 24 -- The Bangladesh Bank has clarified that commercial banks will not bear any financial liability in the case of contract-based imports, in a move aimed at streamlining import procedures and encouraging greater engagement from banks.

In a circular issued on Tuesday, the central bank said importers should not be restricted from executing import transactions solely on the basis of sales contracts.

The directive comes in response to banks' longstanding reluctance to handle such transactions, stemming from the misconception that contract-based imports placed the financial burden on them.

The circular explicitly clarifies that banks will be responsible only for managing payment procedures using funds provided by the importers ...