United News of Bangladesh

Bangladesh Bank (BB) has formed a Tk 10,000-crore refinance scheme to boost agricultural production, generate employment, and ensure national food security. The three-year scheme came into effect on June 8, 2026, offering credit to end-borrowers at a maximum interest rate of 8 percent. A total of 42 commercial banks have already signed participation agreements with the central bank to disburse loans under this facility. Under the scheme, farmers and rural entrepreneurs can access financing across crops, agricultural machinery, livestock, fisheries, and various rural income-generating activities. According to the central bank guidelines, the maximum loan limit for a single borrower is set at Tk 30 lakh for crop cultivation, Tk 15 lakh for rural income-generating activities, Tk 20 lakh for agricultural machinery, and Tk 1 crore for fisheries and livestock sectors. To support small, marginal, and sharecroppers, the scheme allows collateral-free crop loans of up to Tk 5 lakh per borrower against crop hypothecation alone. Bangladesh Bank expects the initiative to enhance credit flow to the agricultural sector, boost rural incomes, create new employment opportunities, and play a vital role in safeguarding national food security.

Bangladesh Bank (BB) has granted permission to release the remaining portion of an approved foreign currency syndicated loan for power generation company SS Power-I Limited. The thermal power plant is a concern of S. Alam Group of Industries, located in Banshkhali, Chattogram. Under the decision, the central bank permitted the release of nearly US$ 3.2 million, which constitutes the remaining portion of the syndicated loan under Rupali Bank PLC. It also waived the application of a specific provision of the Bank Company Act, 1991 regarding the opening of Letters of Credit (LC) for the company. The Banking Regulation and Policy Department-2 of the central bank issued a notification on Wednesday (August 19) in this regard. A circular letter was subsequently sent to the managing directors and chief executive officers of all scheduled banks to take necessary action. According to the central bank notification, Section 27ka ka (3) of the Bank Company Act, 1991 will not apply to SS Power-I Limited for releasing Rupali Bank PLC's remaining $3,197,561.28 ( around $32 million) foreign currency syndicated loan and for opening LCs. However, the central bank attached a crucial condition to this permission. Bangladesh Bank stated that no financial liability will be created for the central bank against this loan facility. Rupali Bank cannot claim any financial assistance or support from Bangladesh Bank against this loan in the future. Central bank officials noted that this special permission clears the way for Rupali Bank to disburse the remaining balance of the previously approved syndicated loan to SS Power-I Limited and creates the opportunity to open the necessary LCs for import activities. The notification specified that the decision was taken under the powers vested in Bangladesh Bank by Section 121 of the Bank Company Act, 1991.

Islami Bank Bangladesh PLC and Mastercard jointly organized an award distribution ceremony for the winners of their 'Spend and Win' campaign at Islami Bank Tower on Tuesday (August 18). Islami Bank's Managing Director (Acting) Md. Altaf Hossain attended the program as the chief guest, while Zakia Sultana, Country Manager of Mastercard, was present as the special guest. The bank's Additional Managing Director, Engr. Mohammed Jamal Uddin Mazumder, highlighted key aspects and details of the joint campaign during the event. Prizes were handed over to the top three campaign winners: Md. Nurul Islam from Dhaka, Md. Abdul Hannan from Chattogram, and Mohammad Mahdee Hasan from Chattogram. Islami Bank Additional Managing Director Dr. M. Kamal Uddin Jasim, along with Deputy Managing Directors Mahmudur Rahman, Md. Rafiqul Islam, Muhammad Sayid Ullah, and Md. Maksudur Rahman was also present at the ceremony. Earlier, Executive Vice President and Head of Digital Banking Wing Md. Mosharraf Hossain delivered the welcome address. Senior officials from both Islami Bank and Mastercard were in attendance at the function, according to a press release.

Bangladesh Bank has raised the agricultural credit disbursement target by nearly 54 percent for the current fiscal year 2026-27, setting it at Tk 60,000 crore. Under the updated guidelines, all commercial banks are now mandated to disburse at least 4 percent of their total loan portfolio to the agriculture sector, up from the previous minimum requirement of 2.5 percent. BB consolidates foreign exchange rules for import trade In the previous fiscal year, the agricultural disbursement target stood at Tk 39,000 crore. BB Deputy Governor Dr Md Habibur Rahman announced the new Agricultural and Rural Credit Policy during a press conference held at the central bank headquarters on Monday. Out of the total Tk 60,000 crore target for FY27, Tk 20,495 crore has been allocated to state-owned commercial and specialised banks, while private and foreign banks have been tasked with disbursing the remaining Tk 39,505 crore. According to the central bank, the primary objective of the policy is to boost agricultural production and contain inflation by ensuring adequate credit flow to the sector. To strengthen supervision and monitoring of the programme, a specialised "web-based agricultural credit MIS software" has been developed. The Bangladesh Bank introduced several new measures in this year's policy framework. For loans up to Tk 5 lakh in the fisheries and livestock sectors, traditional immovable property collateral is no longer required. Instead, banks can accept personal, social, or group guarantees, making credit accessible to women and marginal farmers. Group-based financing has been expanded for crops, fisheries, and rural income-generating activities, with relaxed limits on group membership size. Credit coverage has been extended to new sub-sectors, including fish and poultry chick production in hatcheries, camel farming, blueberry cultivation, shimul root (cotton tree root), ashwagandha, and organic fertiliser production using eggshells. Genuine farmers can be identified through certificates provided by local agriculture, fisheries, or livestock officers, or via Farmers’ Card. The mandatory requirement for possessing a passbook to obtain a loan has been abolished. A new provision allows banks and farmers to mutually agree on introducing insurance coverage to mitigate climate change risks. The central bank expressed optimism that the timely policy measures will play a crucial role in reducing poverty, generating new employment opportunities, and maintaining overall macroeconomic stability in Bangladesh.

Asian Development Bank (ADB) Vice-President for South, Central and West Asia Yingming Yang concluded a five-day visit to Bangladesh on Thursday, advancing consultations on the bank’s next Country Partnership Strategy (CPS) and discussions on key reforms, investment priorities and the Integrated Growth Network Development (IGND) initiative. “Bangladesh is entering an important phase of its development journey, with a growing need to strengthen competitiveness, mobilise private investment, and build resilience,” Yang said. ADB delegation discusses banking sector reforms, financial stability with BB chief He said the discussions during his visit reaffirmed the strength of the ADB-Bangladesh partnership and highlighted the need to translate strategic commitments into sequenced reforms, bankable investments and effective implementation. As a government-led initiative, IGND provides a framework for aligning reforms, investments and institutions to unlock opportunities across regions, strengthen connectivity and productivity, and support Bangladesh’s long-term growth ambitions, he said. The visit followed ADB President Masato Kanda’s visit to Bangladesh in May. The government and ADB have identified an annual ADB pipeline of more than $1 billion aligned with the IGND initiative and begun investment promotion consultations with private sector representatives. Yang also discussed Bangladesh’s potential to emerge as a regional hub for transport, logistics, energy and digital connectivity through stronger regional cooperation and integration. During a meeting with Finance and Planning Minister Amir Khosru Mahmud Chowdhury, discussions focused on aligning the next CPS with the government’s medium-term reform and development framework, promoting private sector-led economic diversification and strengthening resilience to shocks. They also reviewed progress and next steps for IGND implementation, including priority growth-node planning and project pipeline readiness. Banking and capital market development, renewable energy and private investment mobilisation were also discussed. In Chattogram, Yang delivered the keynote address at a national dissemination seminar on IGND, highlighting the initiative’s potential to strengthen links among growth centres, markets and regional and global value chains. He said integrated investments in infrastructure, logistics, energy, urban development and human capital could raise productivity, attract investment, create quality jobs and expand economic opportunities across regions. Yang also held consultations with senior government officials, development partners, private sector leaders, think tanks and other stakeholders on the next CPS. The discussions focused on private sector-led diversification and resilience to external and domestic shocks, including the reforms, investments and implementation arrangements required to deliver these priorities. During his visit, Yang met Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood; Environment, Forest and Climate Change Minister Abdul Awal Mintoo; Bangladesh Bank Governor Md Mostaqur Rahman; and Prime Minister’s Adviser for Finance and Planning Rashed Al Mahmud Titumir, among others. The meetings covered banking and capital market reforms, renewable energy, private sector participation, climate-resilient investment, digital transformation and the role of Chattogram as Bangladesh’s principal maritime and economic gateway. Yang also met bilateral and multilateral development partners to discuss complementary programming, cofinancing, technical assistance and coordinated policy dialogue. He discussed using IGND as a platform to align development pipelines and address financing and implementation gaps. In meetings with private sector representatives and think tanks, he discussed reform priorities, implementation constraints, investment barriers and opportunities to mobilise private capital under IGND. The feedback will inform the next CPS and ADB’s future operations. In Chattogram, Yang also visited activities supported under ADB’s Skills for Industry Competitiveness and Innovation Program and reviewed how industry-linked training can contribute to employment, productivity and industrial competitiveness.

A delegation from the Asian Development Bank (ADB), led by Vice President for South, Central and West Asia Yingming Yang, met Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters on Thursday. BB Deputy Governors Md Habibur Rahman and Dr Md Kabir Ahmed, along with senior officials from the Financial Sector Support and Strategic Planning Department (FSSSPD) and other relevant departments, attended the meeting. BB consolidates foreign exchange rules for import trade The two sides held positive and constructive discussions on reforms, restructuring and recapitalisation of Bangladesh's banking sector, strengthening financial sector stability and capacity, and potential ADB support in these areas. The BB governor highlighted the central bank's firm commitment to implementing necessary reforms in the banking and broader financial sectors. Welcoming the central bank's commitment to the reform agenda, ADB Vice President Yingming Yang expressed the lender's interest in continuing its assistance and support throughout the reform process. Both sides reaffirmed their commitment to strengthening cooperation to build a more robust, stable and sustainable financial sector in Bangladesh.

Bangladesh Bank has streamlined foreign exchange regulations governing import trade, aiming to simplify procedures and align them with contemporary business needs. The central bank issued a new consolidated circular on Thursday, bringing together various directives issued over the past year into a single framework. The move is expected to facilitate international trade by making import-related foreign exchange procedures simpler and more transparent. Bangladeshi cardholders spend over Tk 1,000 crore abroad in June: Bangladesh Bank The new circular updates “FE Circular No. 33” issued on August 14, 2025. It consolidates various guidelines issued over the past year, bringing all foreign exchange regulations related to imports under a single circular. With the issuance of the consolidated circular, all previous circulars and instructions on the subject stand cancelled. However, existing reporting requirements relating to import trade will remain unchanged. The circular was issued under the powers conferred by Section 20(3) of the Foreign Exchange Regulation Act, 1947, and will remain effective for one year. Any new instructions issued during this period will apply in conjunction with the circular. Stakeholders said aligning foreign trade practices with current business realities would help facilitate Bangladesh’s international trade. Experts, however, stressed that effective implementation at the field level, stronger digital infrastructure, and enhanced capacity of banks and importers will be crucial to fully realise the benefits of the new framework.

Bangladeshi cardholders spent more than Tk 1,000 crore abroad in June 2026, with overseas card expenditure surging nearly 27.5 percent month-on-month, according to the latest Bangladesh Bank data. The central bank report shows that Bangladeshi citizens spent 4.29 times more abroad using cards than foreign nationals spent using cards in Bangladesh during the same month. The data also showed a significant expansion in card adoption and usage over the past five years. Banglalink gets licence to run e-wallet service The number of debit, credit and prepaid cards nearly doubled, while total transaction volume rose by 91 percent—from Tk 23,497.10 crore in July 2021 to Tk 44,812.80 crore in June 2026. Bangladeshi travelers spent a combined Tk 1,037 crore (Tk 10.37 billion) abroad through credit, debit and prepaid cards in June, up 27.55 percent from Tk 813 crore in May. The breakdown of overseas card spending in June was: Credit cards- Tk 552.27 crore through 863,412 transactions, compared with Tk 425 crore in May, Debit cards- Tk 423.20 crore through 815,719 transactions and Prepaid cards- Tk 61.10 crore through 122,025 transactions. Departmental stores accounted for the largest share of overseas credit card spending in June at Tk 183 crore, or 33.10 percent of total expenditure. Other major spending categories included retail outlet services at Tk 97.09 crore, transportation at Tk 63.90 crore, pharmaceuticals and medicines at Tk 59 crore, clothing stores at Tk 39.70 crore, and business services at Tk 39.10 crore. The United States was the top destination for Bangladeshi credit card spending abroad, accounting for 15.40 percent of total expenditure in June. Thailand ranked second with 10.59 percent, followed by Saudi Arabia at 8.97 percent, the United Kingdom at 8.36 percent, Singapore at 7.32 percent, India at 6.79 percent and Malaysia at 6.08 percent. Bangladesh Bank statistics show substantial growth in the number of payment cards over the past five years. The number of debit cards rose from 23,620,886 in July 2021 to 40,268,746 in June 2026. Credit cards increased from 1,737,932 to 2,750,513 during the same period. Prepaid cards recorded the strongest growth, rising from 954,673 in July 2021 to 8,696,712 in June 2026—an increase of 157 percent between December 2022 and June 2026, according to the report. The report also recorded increased card use for utility bills, government services, healthcare and pharmaceuticals, commercial services and transportation. The sharp rise in card usage signals growing adoption of digital payments and could support financial inclusion, expansion of the digital economy and reduced reliance on cash. However, Bangladesh Bank identified several structural challenges to achieving a more cashless economy. These include inadequate digital infrastructure in rural areas, low financial literacy, cybersecurity risks, limited trust in digital payment platforms, high transaction costs, restricted smartphone access and the continued dominance of an informal, cash-based economy. The central bank stressed the need for sustained consumer awareness and training to help users understand both the benefits and security risks associated with card-based transactions.

Bangladesh Bank has cancelled the contractual appointment of its Chief Economist Prof Akhand Mohammad Akhtar Hossain. The decision was conveyed through an office order issued by Human Resources Department-1 on Tuesday, signed by Director (HRD-1) Md Shahid Reza. However, the matter came to light on Wednesday. Share trading of 3 NBFIs suspended after BB declares them non-viable According to the order, Akhtar Hossain’s remaining contractual tenure as the chief economist, originally made under Office Order No. HRD-1: 28/2025 dated July 1, 2025, stands cancelled effective from September 10, 2026.

To accelerate Bangladesh Bank’s universal ‘Bangla QR’ payment initiative and strengthen the cashless transaction ecosystem, bKash has conducted a series of view exchange sessions with merchants nationwide. So far, around 1,500 bKash merchants have participated in these sessions organised across 97 zones. During these sessions, discussions focused on how merchants can accelerate their businesses by adopting digital payments. A payment made through ‘Bangla QR’ goes directly into the merchants’ accounts. As a result, the risk of carrying cash and the hassle of small change are reduced, transaction transparency increases, and business bookkeeping becomes easier. Additionally, this provides the opportunity to assess the creditworthiness of individual merchants through analysing their account transactions. Based on these ratings, micro and small entrepreneurs can access instant, collateral-free digital loans to address working capital shortages. bKash, in partnership with BRAC Bank, has already piloted this short-term digital loan facility, under which a significant number of merchants have started receiving digital nano loans. Merchants were also briefed on ‘Digital Payment Speakers’ installed at merchant points for faster payment confirmation. Through this system, both customers and merchants receive immediate audio confirmation of the payment amount and transaction success, eliminating the need for manual verification. The sessions highlighted benefits for consumers as well. While scanning Bangla QR codes for instant payments, bKash customers can access ‘Pay Later’, a collateral-free credit facility that allows instant purchases even with insufficient account balances. Additionally, customers can make payments using Visa cards linked to their bKash app or add money from an extensive network of partner banks. Meanwhile, to drive the expansion and acceptance of Bangla QR, bKash is building awareness across traditional markets (haat-bazaars) and major commercial centres nationwide by constructing branded archways, installing visible promotional materials, and conducting localised public announcements (miking). Notably, bKash has already replaced regular QR codes with Bangla QR at more than 800,000 merchants across the country - ranging from grocery stores to pharmacies, restaurants, lifestyle shops, and superstores. The initiative has also significantly boosted merchant payments, generating average daily transactions worth over Tk 2 billion.