Regulatory Alerts2020-07-22
Added · Updated
ACD Circular No. 03: Agricultural & Rural Credit Policy and Program for the FY 2020-2021
Bangladesh Bank establishes a total agricultural and rural credit disbursement target of 25,292 billion BDT for FY 2020-2021, requiring scheduled banks to prioritize lending to core sectors: at least 60% for crops, 10% for fisheries, and 10% for livestock. The circular mandates that private and foreign commercial banks calculate their targets based on policy loans plus an additional 2%, with non-compliance resulting in a mandatory deposit of the shortfall or 3% of the target amount at Bangladesh Bank without interest. It introduces specific operational directives, including a maximum 10-day approval timeline for crop loans, the waiver of Credit Information Bureau (CIB) reports for short-term crop loans up to 200,000 BDT, and the promotion of transparent public disbursement events and area-based approaches to enhance access for small, marginal, and women farmers.