The Bangladesh Bank reduced the cash margin required for getting letters of credit (LCs) for eco-friendly automobile imports, taking effect from February 1.The central bank has taken the decision today under Section 29 of the Bank Companies Act of 1991. As a result, the prior criterion, as described in BPRD Circular Letter 41, has been revised to require a 100% cash margin for LCs for the import of sedans, SUVs, and MPVs. Establishing LCs for these vehicles will now demand a minimum 50% cash margin. The updated policy now grants special priority to fully electric and hybrid vehicles. The cash margin for eco-friendly vehicles will be established by the banker-customer relationship, reflecting a global trend toward energy-efficient and sustainable mobility. The decision was made to promote environmentally friendly alternatives, reduce carbon dioxide emissions, and enhance the nation’s air purity index.
However, it has many advantages. It reduced fuel costs, especially for electric vehicles (EVs), which are often cheaper to charge than refueling with gasoline. As eco-friendly cars become more popular, their resale value is improving. Also, it’s friendly for fewer health issues caused by pollution.
Source: The Businesss standard
