BB asks banks to prioritise credit for farmers hit by heavy rainfall

Bangladesh Bank (BB) has instructed all scheduled banks to give priority to farmers affected by recent heavy rainfall in receiving agricultural credit under its refinancing scheme, aiming to support recovery efforts and protect farm production in vulnerable regions.

The directive was issued on Tuesday through a Financial Inclusion Department (FID) circular.

According to the circular, banks have been asked to ensure quick and priority-based loan disbursement to farmers in flood-affected haor and other areas where intense rainfall has damaged crops and disrupted agricultural activities.

The central bank said farmers in districts such as Sylhet, Sunamganj, Habiganj, Kishoreganj, Netrokona and Moulvibazar have suffered significant losses due to recent adverse weather conditions, making timely access to credit crucial for restoring agricultural production and livelihoods.

To facilitate the process, BB also instructed banks to prioritize Krishak Smart Card holders while extending loans from the refinancing fund for marginal and landless farmers, sharecroppers, small account holders and micro-enterprises.

The move is aimed at ensuring that affected farmers can obtain working capital quickly for crop rehabilitation, purchasing agricultural inputs and continuing farming operations despite weather-related setbacks.

The central bank, however, clarified that eligible farmers should not be denied access to loans solely because they have not yet received a Krishak Smart Card.

Bangladesh Bank said the special emphasis on flood-affected farmers reflects its commitment to supporting rural communities facing climate-induced challenges and maintaining food production across the country.

All other provisions of the existing refinancing scheme will remain unchanged, the circular added.