Bangladesh Bank, the country’s central bank, on Tuesday warned the banks that they would be punished in case of failure to disburse the targeted farm loans.
“We will cut 3 percent of non-disbursed farm loans from the respective banks’ accounts,” Governor Dr Atiur Rahman told top bankers at the launch of the Agriculture and Rural Credit Policy and Programme for fiscal 2012-13 at BB.
“Non-compliance has a cost,” Atiur told the bankers.
If a bank fails to disburse Tk 20 crore out of its annual target of Tk 100 crore, the BB will keep Tk 60 lakh (@Tk 3 lakh per Tk 1 crore.
The BB has set farm loan disbursement target for all banks (47) operating in Bangladesh at Tk 14,130 crore for 2012-13, up by only 2.39 percent from the previous year.