The banking sector will have to be more proactive, responsible and dynamic in order to expedite the agricultural loan disbursement process under the prime minister’s allied stimulus package of Tk 5,000 crore among the farmers.
Soon after the announcement of the package in April last year, the Bangladesh Bank (BB) instructed all the government and private commercial banks to complete the disbursement process by September 30 last year. But the most banks are still far from meeting the disbursement deadline, compelling the central bank to extend the timeframe twice.
It may be mentioned that out of the 43 banks only some 17 achieved less than 30 per cent of their respective loan disbursement target set by the banking regulator till January 15, 2021.
The central bank will have to intensify its close
monitoring for quick and proper disbursement
of funds to farmers from the stimulus package
As agriculture still is considered as the life-blood of the country’s rural economy, the banks must expedite the loan disbursement process so that after taking advantage of the credit facilities, they may avail the opportunities of recouping their losses caused by the adverse impact of Covid-19 pandemic.
Observing the overall activities of agriculture loan disbursement process, the central bank has already issued an order to the commercial banks to expedite the loan disbursement. Otherwise, their undisbursed amount will be handed over to banks that have fulfilled the lending target, the central bank cautioned.
It has been noticed that the delay is attributed mainly to the banks’ lack of capacity and efficiency to reach such loans to rural farmers.
Both government and private commercial banks need to increase their capacity to reach loans to farmers in rural areas. Also the central bank will have to intensify its close monitoring for quick and proper disbursement of funds to farmers from the stimulus package.
The banks which can fail to reach the loans to farmers need proper guideline so that they can complete the disbursement process. Besides, taking of various special measures to reach the credit to farmers across the country has become the need of the hour. Also, authorities concerned will have to monitor whether the truly affected farmers are getting loans.