ACD-1 Circular No. 02: Refinance Scheme of Tk 3,000 Crore for Creating Agricultural Based Economic Hub in North Bengal of the Country

Bangladesh Bank
(Central Bank of Bangladesh)
Head Office
Motijheel, Dhaka-1000
Bangladesh.

22 Asharh 1433
ACD-1 Circular No.: 02 Date: ----------------
06 July 2026
Managing Director/Chief Executive Officer
All Scheduled Banks operating in Bangladesh.

Dear Sir,

Policy for Formation and Management of a Tk 3,000 (Three Thousand) Crore Refinance Fund for Creating an Agricultural-Based Special Economic Hub in North Bengal of the Country.

The importance of the agricultural sector is immeasurable in the overall macroeconomic growth of Bangladesh, including ensuring food security, creating employment, and poverty alleviation. North Bengal (districts under the Rajshahi and Rangpur divisions) is recognized as one of the major agricultural commodity producing regions of the country. However, the true economic potential is not being fully realized due to limitations in modern post-harvest management (Post-Harvest Management) and marketing infrastructure for agricultural products produced in this region, specifically the lack of specialized cold storage, inadequate processing industries, and limited access to supply chains, which has a negative impact on the country's overall economy.

To accelerate the country's economy, a Tk 3,000 (Three Thousand) Crore refinance fund has been formed from the surplus liquidity fund created by scheduled banks under the management of Bangladesh Bank, with the aim of creating employment by making the entire agricultural value chain (from production to preservation, marketing, processing, and export to international markets) of agricultural products in North Bengal operational and dynamic.

The following guidelines will be followed for this refinance fund applicable to scheduled banks operating in Bangladesh:

2. Name of the Fund: "Tk 3,000 (Three Thousand) Crore Refinance Fund for Creating an Agricultural-Based Special Economic Hub in North Bengal of the Country".

3. Objective of the Fund: The objective of the fund is to:
   a) Increase agricultural production; b) Expand marketing, preservation, processing, value addition programs, and infrastructure development of agricultural products; c) Provide assistance in the development of the Cottage, Micro, Small and Medium Enterprises (SMSE) and agricultural-based industrial sectors; d) Produce, process, and develop supply chains for exportable agricultural products; and e) Assist in increasing rural employment and income.

Page-2
Agricultural Credit Division-1
50119

From Previous Page: -2-

4. Amount of the Fund: Tk 3,000 (Three Thousand) Crore.

5. Source of the Fund: Fund created from the surplus liquidity of scheduled banks under the management of Bangladesh Bank.

6. Tenure of the Fund: 03 (Three) years from the date of issuance of the circular.

7. Geographic Boundary of Fund Utilization: The benefits of this fund will be reserved for North Bengal of the country (districts under the Rajshahi and Rangpur divisions).

8. Execution of Loan/Investment Agreement and Management of the Fund:
   a) All scheduled banks operating in Bangladesh may avail refinance benefits under this fund by executing a Participation Agreement with Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka. The said fund will be managed by Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka, and Agricultural Credit Division-2 may issue necessary instructions regarding percentages/rules. The program of receiving loans/investments from the fund and repayment against it by scheduled banks must be executed by the Head Office/Principal Office of the respective bank. b) Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka will allocate funds to banks based on the demand, capacity for loan/investment distribution, etc., of the participating banks, and may re-determine the amount of allocated funds if necessary in the future. c) After the customer-level loan/investment distribution, the allocated amount will be refunded against the refinance claims submitted by the participating banks after verification. d) Participating banks must submit the application for refinance against the loans/investments distributed under this fund to Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka in the prescribed format (Attached Form-2) by the 15th of the following month. If the application is not submitted within the specified time, it must be submitted within a maximum of 02 (Two) months with reasons for the delay; otherwise, the said loan/investment will not be considered for refinance under this fund.

9. Sector-wise Fund Allocation and Categories of Loans/Investments: Participating banks may distribute the funds allocated to them at the specified percentages in the following 04 (Four) main sectors:
   a) Agricultural Production Sector [Allocation: 15% (Fifteen Percent)]: All types of crop crops, fisheries, livestock, agricultural and irrigation machinery sectors, and other allied loan sectors included under the existing Agricultural and Allied Credit Policy and Guidelines will be included under this sector. b) Agricultural Product Preservation, Transportation, Marketing and Infrastructure Sector [Allocation: 35% (Thirty-Five Percent)]: Establishment and modernization/repair of agricultural product preservation, marketing, agricultural-related modern and eco-friendly cold storage, modern seed storage, godowns, food grain storage (Cold Storage), cold/controlled supply chains, and working capital supply, etc., will be included under this sector. c) Agricultural/Agricultural-Based Product Production and Processing Sector [Allocation: 35% (Thirty-Five Percent)]: Establishment of agricultural-based industries included in "Attached Form-1", production and marketing of agricultural/agricultural-based products, establishment and modernization/repair of agricultural product/food processing industries, and working capital supply, etc., will be included under this sector. d) Export of Agricultural Products and Agricultural-Based Products Sector [Allocation: 15% (Fifteen Percent)]: Export of agricultural products and agricultural-based products or export-oriented programs will be included under this sector.

Page-3
From Previous Page: -3-

e) Banks may increase/decrease the percentage of funds allocated in the said 04 main sectors with the prior approval of Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka, where necessary.

f) Agricultural-based enterprises in North Bengal and any agricultural product production, preservation, marketing, and processing that is environmentally friendly and unconventional, outside the sectors mentioned in sub-sections 9(a-d) above, will be eligible for refinance under this fund if consistent with the main objective of the fund, with the prior approval of Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka.

10. Maximum Limit of Customer-Level Loans/Investments: The maximum limit for loans/investments for individuals, groups, and institutions will be as follows:
    a) For Agricultural Production Sector: Tk 30.00 (Thirty) Lakh. b) For Agricultural Product Preservation, Transportation, Marketing and Infrastructure Sector: Tk 40.00 (Forty) Crore. c) For Agricultural/Agricultural-Based Product Production and Processing Sector: Tk 40.00 (Forty) Crore. d) For Export of Agricultural Products and Agricultural-Based Products Sector: Maximum Tk 15.00 (Fifteen) Crore. e) Banks may increase/decrease the loan limit by a maximum of 20% (Twenty Percent) at their own discretion based on the actual demand of the customer and realistic conditions where necessary.

11. Interest/Profit Rate:
    a) Participating banks under this fund will receive refinance benefits from Bangladesh Bank at an interest/profit rate of 4% (Four Percent). b) The interest/profit rate for customers will be maximum 9% (Nine Percent). In the case of Shariah-based financing, the profit rate paid by customers must be determined under the Shariah-approved investment policy; however, it must not exceed 9%. The said interest/profit rate will be applied equally to all customers. Where applicable, interest/profit must be charged on the declining balance of the customer's loan/investment.

12. Tenure of Loans/Investments:
    a) For customer-level applicable cases, considering the sector/project, the maximum tenure for loans/investments distributed in the sector mentioned in sub-section 9(a) with a 03 (Three) month grace period will be 18 (Eighteen) months, and participating banks must repay the principal and interest/profit (at the rate of 4% determined by Bangladesh Bank) to Bangladesh Bank within a maximum of 18 (Eighteen) months from the date of receiving refinance. b) For customer-level applicable cases, considering the sector/project, the maximum tenure for loans/investments distributed in the sectors mentioned in sub-sections 9(b-d) with a grace period of 03 (Three) to 06 (Six) months will be 36 (Thirty-Six) months, and participating banks must repay the principal and interest/profit (at the rate of 4% determined by Bangladesh Bank) to Bangladesh Bank within a maximum of 36 (Thirty-Six) months from the date of receiving refinance.

13. Method of Refinance Application to Bangladesh Bank:
    a) Participating banks must apply for refinance on a monthly basis to receive refinance after starting customer-level loan distribution or investment. b) The respective participating bank must submit the following necessary information/documents to Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka to receive refinance from Bangladesh Bank after distributing loans/investments to customers:

Page-4
From Previous Page: -4-

=> Confirmation regarding actual distribution; => Details of claims regarding distributed loans/investments (Attached Form-2); => Deed of Promise for repayment of loans/investments (DP Note); => Other relevant information.

14. Payment Method:
    a) The entire principal along with interest/profit must be paid to Bangladesh Bank before the maturity date determined for the funds disbursed to participating banks. b) All liabilities for collecting loans/investments distributed to customers will rest on the distributing bank. In this regard, the claim of Bangladesh Bank cannot be linked with the collection of loans/investments. c) If the loans/investments taken from Bangladesh Bank under the fund are not repaid within the determined period, the current account of the respective participating bank kept with Bangladesh Bank will be adjusted to recover the amount. d) If it is found by Bangladesh Bank that the funds provided under this fund or any part of it have been misused, or if interest/profit exceeding 9% is collected against distributed loans/investments, a one-time collection of interest/profit at an additional rate of 2% over the determined rate will be made on the said amount by Bangladesh Bank.

15. Reporting and Monitoring:
    a) Separate accounts must be maintained for each loan/investment distributed under this fund. b) After receiving refinance from Bangladesh Bank, the capitalized details of loan distribution or investment (Attached Form-3) must be submitted to Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka on a monthly basis (within 07 days of the end of the month) for intensive monitoring. c) Participating banks must have their own well-designed planning and monitoring system to ensure the proper use of customer-level loans/investments. Participating banks must regularly monitor issues regarding distribution, collection, and proper use of customer-level loans/investments. d) The proper use of loans/investments for farmers will be monitored and evaluated by Bangladesh Bank through periodic field inspections and verification of information. e) If banks distribute loans/investments under this refinance fund in accordance with sub-section 9(a), it can be shown as distribution against their existing agricultural and allied loan/investment targets, and if distributed in accordance with sub-sections 9(b-d), it can be shown as distribution against their existing Cottage, Micro, Small and Medium Enterprises (SMSE) loan/investment targets.

16. Other Instructions:
    a) Banks must install banners inside and outside (in easily visible places) of bank branches mentioning information regarding customer-level loan distribution or investment programs at a 9% interest/profit rate under the refinance fund and promote this discounted loan facility through special campaigns. b) The respective bank will distribute loans or invest considering the availability limit of the fund from Bangladesh Bank, and in the case of loan distribution or investment, the participating bank will follow existing rules and regulations. c) Existing policies and guidelines such as Agricultural and Allied Credit Policy and Guidelines, Cottage, Micro, Small and Medium Enterprises (SMSE) Financing Policy, and other policies issued by Bangladesh Bank and currently followed, such as guarantee, application collection and processing time, borrower eligibility determination, loan/investment distribution, proper use of loans/investments, supervision and collection process, will be followed as usual.

Page-5
From Previous Page: -5-

d) Banks must ensure direct customer-level loan/investment distribution through their own network, i.e., own branches, sub-branches, agent banking, and groups.

e) Banks may consider the use of alternative guarantees (e.g., personal, social, or group guarantees) instead of existing immovable property to facilitate financing for women and elderly farmers.

f) Borrowers identified as defaulters in the Credit Information Bureau (CIB) will not be considered eligible to receive loans/investments under the said fund.

g) Loans/investments under this fund must be distributed at the field level as entirely 'New Loans'.

h) The loans/investments taken cannot be used in any way for consolidating the customer's old loans, nor for partial or full consolidation (consolidation) of bad or regular running period/working capital loans.

i) No type of charge or fee other than those mentioned in the existing policy regarding Schedule of Charges issued by Bangladesh Bank can be collected from customers.

j) In the case of investments by banks operated on Islamic Shariah basis and other banks through Islamic banking system approved investments, banks can provide investments to customers under this fund based on their own approved investment methods without making any difference in percentage.

k) Participating banks must provide copies of necessary information, documents, and papers as required by Bangladesh Bank in the context of the said refinance. Bangladesh Bank may make necessary additions, deletions, and adjustments to the percentages of the mentioned policies regarding refinance from time to time.

Banks are advised to execute a Participation Agreement with Agricultural Credit Division-2, Bangladesh Bank, Head Office, Dhaka within the next 45 (Forty-Five) days after the issuance of this circular to participate in the said refinance fund by following the above-mentioned policies and instructions.

These instructions are issued under the powers granted under Section 45 of the Bank Company Act, 1991.

These instructions will come into force immediately.

Appendix: 3 (Three) Pages.

Yours faithfully,

(Debashis Sarkar)
Director (ACD-1)
IP: 0255665001-6/20170
Email: debashis.sarkar@bb.org.bd

Attached Form-1
List of Agricultural-Based Industries, Agricultural Product Production and Agricultural Product/Food Processing Industries

1. Processed fruit foods (jam, jelly, juice, pickle, sherbet, syrup, sauce, etc.);
2. Fruit (tomato, mango, pear, sugarcane, jackfruit, lychee, pineapple, coconut, etc.), vegetable, pulse processing/processing;
3. Bread & biscuit, semolina, lacha, chanachur, noodles, etc. processing/processing;
4. Rice, flour, wheat flour, suji preparation;
5. Automatic Rice Mill (Auto Rice Mill);
6. Mushroom and Spirulina processing/processing;
7. Starch, dextrin, dextrose and other starch product production, corn processing/processing;
8. Milk processing/processing; (Milk pasteurization, Goudo milk, Ice cream, Condensed milk, Mishti, Paneer, Butter, Ghee, Chocolate, Curd, etc.);
9. Processed food from potato (Chips, Potato, Flakes, Starch, etc.) production;
10. Production of various mixed spices;
11. Edible oil refining and hydrogenation;
12. Salt processing;
13. Prawns and other fish processing and freezing;
14. Herbal and cosmetic preparation;
15. Unani Ayurvedic medicine preparation;
16. Preparation of balanced feed for ducks, chickens, cattle and fish;
17. Seed production, processing and preservation;
18. Jute product preparation (e.g., rope, thread, twine, jute, bag, carpet, jute sandals, etc.);
19. Silk yarn and silk garment production;
20. Agricultural machinery manufacturing industry;
21. Preparation of mud, tile, brick, etc.;
22. Tea processing/processing;
23. Coconut oil preparation (if local coconut is used);
24. Rubber tape, lac processing;
25. Production of new technology-based products, vaccines and medicines related to agriculture, fisheries and livestock sectors;
26. Wood, bamboo and cane furniture design/production;
27. Flower preservation and processing;
28. Meat processing;
29. Production of new fertilizer, mixed fertilizer, granular urea, etc.;
30. Production of bio-pesticide, neem-produced pesticide, etc.;
31. Fish farming/honey production;
32. Production of Paperboard;
33. Production of sugar and other sweetener products (processing/processing of date palm juice, sugarcane juice, etc.);
34. Seafood production and soybean processing/processing;
35. Mustard oil manufacturing industry (if local mustard is used);
36. Rice bran oil production;
37. Rubber product design projects;
38. Seed industry;
39. Processing/processing and marketing of dairy and poultry products;
40. Processing/processing and marketing of horticulture, floriculture products (lemon, mushroom, betel leaf, honey, etc. will be included in this industry).

Attached Form-2
Details of Refinance Claims under the Tk 3,000 (Three Thousand) Crore Refinance Fund for Creating an Agricultural-Based Special Economic Hub in North Bengal of the Country (Monthly)

Bank Name:
Month Name:
Currency:
(In Crore Taka)

Serial No.
Branch Name
Customer Name and Mobile
Department and District
Sector of Loan/Investment
Amount of Distributed Loan/Investment
Customer Level Interest/Profit Rate (%)
Date of Loan Distribution/Investment
Tenure of Loan/Investment
Amount of Refinance Claimed Against Distributed Loan/Investment 1 2 Total Amount:

Attached Form-3
Capitalized Details of Loan Distribution under the Tk 3,000 (Three Thousand) Crore Refinance Fund for Creating an Agricultural-Based Special Economic Hub in North Bengal of the Country (Monthly)

Bank Name:
Period of Report: --/--/-- to --/--/--
(In Lakh Taka)

Branch Name
Department and District
Amount of Allocation
Amount of Approved Loan/Investment a) Agricultural Production Sector b) Agricultural Product Preservation, Transportation, Marketing and Infrastructure Sector c) Agricultural/Agricultural-Based Product Production and Processing Sector d) Export of Agricultural Products and Agricultural-Based Products Sector Total Amount of Distributed Loan/Investment Loan/Investment Received Total Number of Customers Rate of Loan Distribution/Investment Compared to Allocation (%) Amount of Distributed Loan/Investment Loan/Investment Received Number of Customers Amount of Distributed Loan/Investment Loan/Investment Received Number of Customers Amount of Distributed Loan/Investment Loan/Investment Received Number of Customers Amount of Distributed Loan/Investment Loan/Investment Received Number of Customers Grand Total