The central bank yesterday increased the size of Export Development Fund (EDF) by 20 percent to make it $1.2 billion to meet exporters' demands.
The demands from various sectors have increased recently and that is why the central bank added $200 million to the EDF, said a high official of Bangladesh Bank.
The EDF began with an initial amount of $100 million in 2005, which gradually increased to $1 billion last year.
A single party can receive a maximum loan of $12 million under the fund, the official added.
The loans are payable by the banks upon receipt of export proceeds within 180 days of the date of disbursement.
The time period may be extended by the central bank by up to 270 days in case of a longer period for repatriation of export proceeds.
Under the EDF, commercial banks will charge exporters the LIBOR (London Interbank Offered Rate) plus 1.5 percent, meaning, the cost of loans will remain within 2 percent as the six-month LIBOR rate is 0.35 percent at present.
LIBOR is the rate banks charge each other for short-term loans in the London interbank market. It also serves as a global benchmark for short-term interest rates.
BB will follow the LIBOR because the loans will be given in foreign currencies.

The central bank has enhanced the foreign exchange quota limit for global private travellers, according to a notice.
The ceiling has been increased to $12,000 a year for an adult from $5,000 previously, according to the circular issued by Bangladesh Bank's foreign exchange policy department yesterday. The move comes after the quota was increased for business travellers last month.
The annual travel quota for Saarc member countries and Myanmar has been set at $5,000 a year, from $2,000 previously.
For minors, the applicable quota will be half the amount admissible for adults.

However, foreign exchange in the form of cash must not exceed $3,000 per person per trip, the notice said.
On March 10, the central bank allowed exporters, importers, and producers for local markets an entitlement of $ 400 a day, $ 4,000 a trip, and $ 10,000 a year in forex travel quota.
Exporters have also been entitled to use the balance in their foreign currency retention quota account for their business visits abroad.

Bangladesh Bank Governor Dr Atiur Rahman said the central bank has given due importance on financial inclusion and financial literacy programmes in a bid to bring unbanked people under banking network.

“Bangladesh tops South Asian countries, after Sri Lanka, in terms of financial inclusion,” he added.

At present, there are 1.5 crore mobile banking accounts in the country and some 1.33 crore poor people of different ages have opened bank accounts at Tk 10 under the programme, he added.

The BB Governor made the remarks while inaugurating School Banking Conference, Khulna-2014 at Tiger Garden Hotel in Khulna on Saturday.

SK Sur Chowdhury, Deputy Governor, Bangladesh Bank, was present as special guest where students, teachers, guardians and officials of Bangladesh Bank and other commercial banks attended.

Bangladesh Bank recently issued a circular for opening bank accounts for the street children at Tk 10. Children, those who have no guardian, can open an account in any bank of the country, Dr Atiur added.

Financial inclusion programme has become one of the main weapons for ensuring sustainable development in a developing country, he said, adding, people who are deprived of financial services will be brought under the programme for the economic development of the country.

NCC Bank Limited has recently signed an agreement with Airtel Bangladesh Limited to provide mobile banking services to Airtel subscribers.

Airtel customers will be able to enjoy the service by following a simple registration process, says a press release. Under this agreement, Airtel customers can avail cash-in, cash-out, money transfer, mobile top-up, school fee payment, bill payment and other services under the service brand “NCCB SureCash”. Progoti Systems Limited is the software solution partner of NCCB for this service.

Md Omar Faruque Bhuiyan, head of Cards and Mobile Banking of NCC Bank, and Rubaba Dowla, head of mCommerce of Airtel Bangla-desh, signed the agreement.

Mohd Safwan Choudhury and AM Nurul Islam Anu have recently been re-elected vice-chairmen of Bank Asia at a meeting of the bank’s board of directors held in Dhaka.

Safwan, a former president of the Sylhet Chamber of Commerce and Industries, is the managing director of M Ahmed Tea & Lands Co Ltd, Phulbaria Tea Estates Ltd, M Ahmed Cold Storage Ltd, Premier Dyeing and Calendering Ltd, and M Ahmed Food & Spices Ltd.

He is the chairman of the Bangladesh Tea Association and president of Friends in Village Development Bangladesh, an NGO providing education to the under-privileged children.Nurul, a former teacher of the University of Dhaka and a former CSP, was director of National Bank since 2003 and acted as chairman of its audit committee. Subsequently, he joined Bank Asia and acted as chairman of the bank’s audit committee for three years. At present, he heads the Risk Management Committee of Bank Asia.