ACD Circular Letter No. 01: Strengthening agricultural loan disbursement among the three hill tract people of country

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

Agricultural Credit Department

ACD Circular Letter No. 01 Date: 14 Srabon, 1427 29 July, 2020

Managing Director / Chief Executive All Scheduled Banks operating in Bangladesh

Dear Sir,

Regarding the opening of bank accounts for general farmers and jhum cultivators in the Chittagong Hill Tracts (Khagrachhari, Rangamati, and Bandarban districts) and the provision of agricultural loans and lentil and spice loans under incentive facilities.

Reference is drawn to your attention regarding ACD Circular No. 01 dated 13.04.2020, ACD Circular No. 02 dated 27.04.2020, ACD Circular No. 02 dated 30.05.2011, BCD Circular No. 12 dated 18.04.1988, and BCD Circular No. 57 dated 10.12.1988.

In order to achieve the overall economic development of the people of the Chittagong Hill Tracts (Khagrachhari, Rangamati, and Bandarban districts), it is essential to strengthen the agricultural loan distribution program for general farmers and jhum cultivators under the various incentive facilities described in the aforementioned circulars. In this regard, you are hereby instructed to implement the following steps to ensure the proper management of agricultural loan distribution programs in the mentioned areas:

1. In the case of jhum cultivators in the Chittagong Hill Tracts (Khagrachhari, Rangamati, and Bandarban districts), special consideration should be given to facilitate the opening of bank accounts for jhum cultivators at a cost of 10 Taka, based on the recommendation of the Sub-Assistant Agricultural Officer of the relevant block, countersigned by the Chairman/Headman of the local Union Parishad;

2. Take measures to provide special loans at low interest to encourage the creation of gardens, and provide agricultural loans at 4% interest for the cultivation of ginger, turmeric, pepper, black pepper, and bay leaf, giving priority to jhum cultivators;

3. Take necessary measures to provide agricultural loans at 4% interest under incentive facilities to landowners with possession rights in the Chittagong Hill Tracts (Khagrachhari, Rangamati, and Bandarban districts) upon verification by the local Headman and countersignature by the Sub-Assistant Agricultural Officer of the relevant block, and to sharecroppers upon verification of the agreement by the local Karbari and Headman;

4. Take necessary measures to issue special directives by your bank regarding the distribution of agricultural loans in the Chittagong Hill Tracts (Khagrachhari, Rangamati, and Bandarban districts).

Other instructions contained in the aforementioned circulars regarding this matter will remain unchanged.

This directive will take effect immediately.

Yours faithfully,

(Signature) (Mosammat Setara Khatun) Deputy General Manager (Officiating) Phone: 9530223

Phone: 88-02-9550848, 9554899, IP: 88-02-55665001-6, Fax: 88-02-9530479, www.bb.org.bd