ACD Circular No. 16: Relaxation of CIB Inquiry and Reporting Requirements for Short-Term Agricultural Credit up to Tk 1.50 Lakh for Crop Cultivation

ACD Circular No. 16

Date: 325

Policy Department

18 Agrahayan, 1416

ACD Circular No: 16 Dated -------------------- 02 December, 2010

Managing Director / Chief Executive / Country Head All Scheduled Banks Dhaka/Rajshahi

Subject: Relaxation of CIB Inquiry and CIB Reporting Requirements for disbursing short-term Agricultural Credit amounting to a maximum of Tk. 1.50 Lakh for the purpose of Crop Cultivation only.

Reference is drawn to your attention that, in the interest of ensuring that agricultural loans reach farmers in a timely and prompt manner, banks are hereby relaxed from the obligation of CIB Inquiry and CIB Reporting for the disbursement of short-term agricultural credit up to a maximum of Tk. 1.50 Lakh solely for the purpose of crop/produce production.

In this regard, it is mentioned that, in accordance with Section 5.08 of the Agriculture/Policy Credit Policy and Guidelines for the year 2010-2011, under the "Lead Bank" system, if agricultural credit is to be disbursed in a specific union by any bank branch other than the designated bank branch for that union, the requirement to obtain a no-objection certificate from the concerned bank branch shall remain in force as usual, so that defaulters cannot avail themselves of new credit facilities.

The above instructions shall be implemented immediately.

Kindly acknowledge receipt.

Yours faithfully,

(S. M. Moniruzzaman) General Manager Phone 7120947