FID Circular Letter No. 02: Refinance Scheme for Digital Nano Loan

Bangladesh Bank Chief Executive Dhaka. Financial Inclusion Department Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh.

Dear Sir,

Regarding the Refinance Scheme established to provide 'Digital Nano Loan' facilities to improve the standard of living of the financially excluded and vulnerable population.

Reference is drawn to your attention to BRPD Circular No. 11 issued on June 02, 2022, on the aforementioned subject.

2. Under the policy framework mentioned in the circular, Scheduled Banks operating under this scheme shall follow the following instructions regarding obtaining refinance from Bangladesh Bank:

(a) Scheduled Banks approved by Bangladesh Bank to operate the 'Digital Nano Loan' program may obtain refinance facilities from Bangladesh Bank against customer-oriented loan/investment distribution under this scheme. For this purpose, the Scheduled Bank must execute a Tripartite Agreement (hereinafter referred to as 'TPA') with the Financial Inclusion Department (FID) of Bangladesh Bank;

(b) In the case of loan distribution through Mobile Financial Service (MFS) companies under this scheme, the concerned Scheduled Bank and the MFS must sign a Tripartite Agreement (TPA). A copy of the said TPA must be submitted with the first application for obtaining refinance;

(c) The refinance provided by Bangladesh Bank shall generally be repaid on a quarterly basis (according to the fixed repayment schedule) by deducting from the current account of the concerned bank kept with Bangladesh Bank. However, if the tenure of the customer-oriented distributed loan is less than 03 months, the refinance amount shall be repaid in monthly installments. If the loan tenure is more than 03 months but less than 06 months, the first installment of the refinance amount shall be repaid on a quarterly basis, and the remaining amount shall be repaid in monthly installments;

(d) To obtain refinance, Scheduled Banks shall apply to the Director, Financial Inclusion Department, Bangladesh Bank, Chief Executive, Dhaka, by the 20th of each month along with the required information/documents (Annex-01).

3. Other instructions mentioned in BRPD Circular No. 11, dated: June 02, 2022, shall remain unchanged.

These instructions shall come into force immediately.

Yours faithfully,

Joyshree Bagchi Director (FID) Phone: 02-9530343

FID Circular Letter No. 02, Date: 06 Asharh 1429 20 June 2022

Ref No: B: Fin. Inclusion.

Annex-01

Subject: ----------------- Date: -------------

Director Financial Inclusion Department Bangladesh Bank Chief Executive Dhaka.

Dear Sir,

Regarding the application for obtaining refinance from the Refinance Scheme established to provide 'Digital Nano Loan' facilities to improve the standard of living of the financially excluded and vulnerable population.

Following the instructions of BRPD Circular No. 11 and FID Circular Letter No. 02 issued on June 02, 2022, and June 20, 2022, respectively, the bank has distributed a total of ------------ Taka (in words ---------------) in loans/investments to ----- customers through Internet Banking/Mobile Apps/E-Wallet etc./Mobile Financial Service Institution --------- of the bank. The instructions mentioned in the circulars regarding the distribution of the said loans/investments have been followed properly. Detailed information regarding the application for obtaining refinance from the said Refinance Scheme against the said loans/investments is submitted herewith.

In this regard, you are requested to provide refinance of a total of ------------ Taka (in words ---------------) to the bank:

Yours faithfully,

(---------------------------) Managing Director/Department Head ---------------------- Bank Ltd Phone: ---------------------- E-mail: --------------------------

Enclosure:

1. Information of borrowers (Table-1 and 2).
2. DP Note (Signed by Managing Director/Chief Executive).

No. Amount Loan Tenure Customer Count
Total: -

Bank Name:

Table-1: Information of Borrowers

Sr. No.	Customer Name	National ID No.	Gender (Male/Female/Third)	Mobile Number	Loan Account No.	Customer Occupation	Customer Address	Customer District	Amount of Loan/Investment Distributed (Taka)	Date of Distribution	Customer-Oriented Interest/Profit Rate

Table-2: Summary of Borrowers' Information

Sr. No.	District	Female Loan/Investment Recipient	Male Loan/Investment Recipient	Loan/Investment Recipient (Third Gender)	Total
		Number	Amount	Number	Amount