Bangladesh central bank orders agri loan priority for farmers with 'smart cards'

Marginal and landless farmers with “smart cards” will get priority in agricultural loans under the central bank's refinancing scheme to help support recovery efforts and boost production following recent downpours in many areas.

The decision is in line with the “Farmer Smart Card Policy-2025” of the Department of Agricultural Extension, says a Bangladesh Bank notification issued on Tuesday.

Chief executives of all banks were sent the instruction.

Citing the “Farmer Smart Card” policy, the notification said banks will open accounts at Tk 10 for the cardholders and will prioritise them in providing loans under the refinancing programme.

The banks have also been asked to take necessary steps to ensure marginal and landless farmers having no “smart cards” are not deprived of the farm loan facilities.

In addition, banks have been instructed to give priority to lending to marginal and landless farmers whose crops have been damaged due to recent heavy rains.

Bangladesh Bank launched this Tk 5 billion refinancing fund on Sept 5, 2021 for marginal or landless farmers, low-income professionals, school banking account holders, and small businessmen with accounts of Tk 10, 50, and 100 to offset the losses caused by the COVID-19 pandemic.