Bangladesh Bank has directed the banks to allow private traders to import rice without any deposit against LC margin or letters of credit.
The decision was taken to ensure rice supply to local markets in the aftermath of crop losses in recent flash-floods, the central bank said in a notice on Monday.
The updated rules will remain until Dec 31, which would allow the traders to import rice first and pay afterwards. The LC margin varies from bank to bank depending on relations between bankers and customers.
In a letter sent to the chief executives of all banks, Bangladesh Bank said some instability were created by the loss of crops caused by recent floods and heavy rains in parts of the country.
Rice imports by private traders slumped 58 percent year-on-year to 103,200 tonnes between July 1 and May 25 of the outgoing fiscal year.