Regulatory Alerts2023-09-03
Added
SMESPD Circular No. 01: Placement of Posters in Bank Branches to Enhance Awareness at the Marginal Level about Various Steps taken by Bangladesh Bank and Benefits related to the CMSME Sector
Bangladesh Bank requires all scheduled banks to display a specific color poster detailing CMSME sector benefits in every branch, sub-branch, and agent outlet within 30 days. The directive mandates that the poster, sized 24x18 inches, be placed in easily accessible locations to raise awareness among potential entrepreneurs about government support measures. This action is taken under the powers granted by Section 45 of the Companies Act, 1991, and becomes effective immediately.
Bangladesh Bank (Central Bank of Bangladesh) SME & Special Programs Department Head Office Motijheel, Dhaka-1000 Bangladesh.
Ref. No. 01.00.0000.001.01.001.2023-24 Bhadra 19, 1430
SMESPD Circular No. 01 Date: September 03, 2023
Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh
Dear Sir,
Regarding the placement of posters in bank branches to enhance awareness at the marginal level about various steps taken by Bangladesh Bank and benefits related to the CMSME sector.
With reference to the subject cited above, it is informed that Bangladesh Bank is providing various benefits such as policy support, sector-based pre-authorization and re-authorization funds, credit guarantee, incentives, etc., for the CMSME sector. If potential entrepreneurs are informed about all these banking-related benefits, authorization in the CMSME sector will be accelerated, and interested entrepreneurs will be able to take up business by considering the aforementioned benefits.
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To this end, a color poster has been prepared to raise public awareness about various steps taken by Bangladesh Bank and benefits related to the marginal level (copy attached). The poster should be printed in 24"x18" size or through any other suitable medium and installed within the next 30 (thirty) days in a place where it is easily accessible in every branch, sub-branch, and agent outlet of your institution, and the Department must be informed accordingly.
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These instructions shall be implemented immediately.
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These instructions are issued under the powers conferred by Section 45 of the Companies Act, 1991.
Yours faithfully,
(Mohammad Ashiqur Rahman) Director (SMESPD) Phone: 9530502
Enclosure: 01. Poster design regarding special benefits of Bangladesh Bank in the CMSME sector.
Special Benefits of Bangladesh Bank for Cottage, Micro, Small and Medium (CMSME) Enterprises!!!
| Type of Enterprise | Industry/Business Type | Criteria for Determining Industry Type (Applicable for Large Criteria) | Maximum Loan Limit Excluding Land and Building Value | Number of Labor Employed/Working in Industrial Establishment |
|---|---|---|---|---|
| Cottage Industry | Productive Industry | Less than 10 Lakh Taka | Up to 15 members including family members | $15 Lakh |
| Micro Industry | Productive Industry | Less than 10 Lakh Taka to 75 Lakh Taka | 16 to 30 members or less | $1.00 Crore |
| Service Industry | Less than 10 Lakh Taka | Up to 15 members | $25 Lakh | |
| Trading Business | Less than 10 Lakh Taka | Up to 15 members | $50 Lakh<br>Or Turnover/Annual Transaction Amount of Business Establishment up to 2 Crore Taka | |
| Small Industry | Productive Industry | 75 Lakh Taka to 15 Crore Taka | 31 to 120 members | $20 Crore |
| Service Industry | Less than 10 Lakh Taka to 2 Crore Taka | 16 to 50 members | $5 Crore | |
| Trading Business | 10 Lakh Taka to 2 Crore Taka | 16 to 50 members | $5 Crore<br>Or Turnover/Annual Transaction Amount of Business Establishment more than 2 Crore Taka but not more than 20 Crore Taka | |
| Medium Industry | Productive Industry | More than 15 Crore Taka but not more than 50 Crore Taka | 121 to 300 members; however, up to 1000 members for Ready-Made Garment Industry/Labor-intensive Industry | $75 Crore |
| Service Industry | 2 Crore Taka to 30 Crore Taka | 51 to 120 members | $50 Crore |
Promotion: SME & Special Programs Department, Bangladesh Bank
Definition of Cottage, Micro, Small and Medium (CMSME) Enterprises (National Industrial Policy 2016) and Maximum Loan Limit:
Authorization and Credit Guarantee benefits at a maximum rate of 7% from a fund of 25,000 Crore Taka! (SMESPD Circular No. 04, Date: 19/07/2022)
Authorization at a maximum rate of 7% for new entrepreneurs! (SMESPD Master Circular No. 02, Date: 05/09/2019)
Re-authorization and 1% incentive on loan repayment at a maximum rate of 5% for women entrepreneurs! (SMESPD Circular No. 08, Date: 17/08/2021)
Authorization at a rate of 4% for Innovative, Creative and Technology-rich ICT enterprises! (SMESPD Circular No. 04, Date: 29/03/2021)
Authorization at a maximum rate of 7% for agricultural product processing (outside Dhaka and Chittagong City Corporations)! (SMESPD Master Circular No. 02, Date: 05/09/2019)
Authorization from Islamic Shariah-based funds (for agriculture-based industries, small enterprises, and new enterprises)! (SMESPD Master Circular No. 02, Date: 05/09/2019)
Training at least three new women entrepreneurs and authorizing at least one from each bank branch per year! (SMESPD Master Circular No. 02, Date: 05/09/2019)
For detailed information: www.bb.org.bd/smesp
If you face harassment while obtaining CMSME loans or banking services, please inform via Bangladesh Bank's hotline number (16236) or by email to non.port@bb.org.bd.