The central bank governor Dr Atiur Rahman yesterday asked the country’s all scheduled banks to disburse at

least two per cent of their total credit flow to the agriculture sector with a view to ensuring financial access for farmers and sharecroppers. “If any of the scheduled banks fails to disburse the targeted agro-loan,

the bank has to face penalty,” the governor warned while addressing a national level workshop titled “Impact Assessment of Credit Program for the Tenant Farmers,” organised by BRAC, at BRAC Centre Inn in the capital.

Moreover, Atiur said the banks that will be unable to meet the agro-loan target for the current year will have to deposit the undistributed fund to the central bank for one year at bank rate.

Bangladesh Bank’s governor Dr Atiur Rahman addressed the workshop as the chief guest while director general of Department of Agricultural Extension Md Abu Hanif Miah was present as special guest.

The event was also attended by advisor to the executive director of BRAC Dr Mahbub Hossain and lecture of Jahangirnagar University Professor Abdul Bayes. 

Meanwhile, the governor suggested that the country’s foreign commercial banks (FCBs) should provide agriculture loan to the farmers with the help of micro credit financial institutions as most of the FCBs have not enough rural branches.

“A good number of commercial banks are still refraining themselves from disbursing agro loan to the rural areas,” the governor claimed.

“The banks have to increase more agriculture loan with a view to ensuring food security as well as sustainable economic development,” Atiur noted and urged the financial institutions to provide agro loan with easy terms and conditions. “The banks should approve the application of agro loan within 10 working days” he pointed out.

The achievement of the agricultural and rural credit target by the banks will be considered at the time of determining CAMELS ratings, the governor assured the banks.

Appreciating BRAC for its “The Borgachashi Unnoyon Project (BCUP)” or “Tenant Farmers Development Project,” he said the central bank has always facilitated agricultural developments through inspiring the financial institutions to bring the farmers into the mainstream financial activities. 

In 2009, the central bank provided a Tk 500 crore refinancing scheme to BRAC at  only 5 per cent interest rate with a view to delivering collateral free short and medium term agro-loan to the country’s landless,

marginal and unbanked sharecroppers, he said. Under this program, BRAC distributed Tk 10.27 

billion agro loan among 727,182 sharecroppers including women till October 2013, he also said.
Taking this financial facility, around 86 per cent sharecroppers became solvent, Atiur said.