Bangladesh Bank has asked all private commercial banks and foreign banks operating in Bangladesh to disburse at least 2.5 per cent of their respective total loans/advances for agricultural and rural sectors. The central bank on Monday issued a circular to this effect that would come into force from July 1 this year, the beginning of the new fiscal.
Any bank failing to follow the central bank directive will have to deposit an amount equal to the shortfall in loans/advances to Bangladesh Bank for one year, the circular said. The central bank directive, however, will not be applicable for the state-owned banks as these banks have already been disbursing more than 2.5 per cent of their respective loans/advances for the agricultural and rural sectors.

News: The Independent/ Bangladesh/ May-17-2011