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Bangladesh Bank Revises Guidelines for Tk 10,000cr Agricultural Refinance Scheme

Bangladesh Bank has revised key provisions of its Taka 10,000 crore agricultural refinance scheme, updating the source of the fund and reaffirming the scheme's tenure.

By Staff Correspondent
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BB updates guidelines for Tk 10,000cr agricultural refinance scheme | Business
BSS

Bangladesh Bank (BB) has revised key provisions of its Taka 10,000 crore agricultural refinance scheme. The central bank issued a circular replacing Sections 3 and 4 of the original guidelines issued on June 8, 2023. The revised directive states that the Taka 10,000 crore refinance fund will be sourced from the surplus liquidity of scheduled banks maintained under the management of Bangladesh Bank. The refinancing scheme will remain in force for three years from June 8, 2023.

Formalizing the Funding Mechanism

The clarification formalizes the funding mechanism for the scheme aimed at supporting agricultural lending. This move is expected to provide a more transparent and structured approach to utilizing the surplus liquidity of scheduled banks for agricultural finance.

Objectives of the Scheme

Bangladesh Bank said the refinance facility is intended to boost domestic agricultural production, strengthen food security, and promote employment generation by expanding economic activities in rural areas. The scheme is a critical component in the central bank's strategy to support the agricultural sector, which is vital for the country's economy.

Unchanged Provisions

The circular further stated that all other provisions of ACD Circular No. 01, issued on June 8, 2023, will remain unchanged and continue to be effective. This ensures that the core objectives and operational guidelines of the scheme remain intact while addressing the need for updated funding sources.

Source: BSS

FAQ

What is the total fund for the agricultural refinance scheme?
The total fund for the agricultural refinance scheme is Taka 10,000 crore.
How long will the refinancing scheme remain in force?
The refinancing scheme will remain in force for three years from June 8, 2023.
What are the main objectives of the scheme?
The main objectives of the scheme are to boost domestic agricultural production, strengthen food security, and promote employment generation by expanding economic activities in rural areas.

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