Regulatory Alerts2022-05-22
Added
ACD Circular No. 02: Regarding Emphasizing on Disbursement of Agricultural Credit at 4% Concessional Interest Rate for Cultivating Import Substitute Crops
The circular mandates scheduled banks to strengthen the disbursement of agricultural credit at a 4% concessional interest rate for cultivating import substitute crops, including pulses, oilseeds, spices, and maize, to reduce import dependency and ensure domestic supply. Banks are required to set annual targets, monitor branch performance, and submit detailed claims for interest compensation within one month of year-end, subject to Bangladesh Bank's verification of at least 10% of loan files. The document specifies that any remaining interest loss after the 4% subsidy is borne by banks under their Corporate Social Responsibility (CSR) guidelines and outlines operational procedures for area-based approaches, public awareness campaigns, and borrower identification.