Bangladesh Bank (BB) has asked banks to verify Credit Information Bureau (CIB) report for any amount of new loans sanctioned or existing loan renewals in all sectors under the agricultural and rural loans.
The central bank issued a circular on Sunday in this regard.
Previously, a CIB report was not required for agricultural and rural loans up to Tk2.5 lakh.
According to the circular, if loans are provided without verifying the CIB report, a customer could obtain multiple agricultural and rural loans, each up to a maximum of Tk2.5 lakh from various banks, which the lending bank would not know about.
This process creates a risk of increasing default loans, which is why the directive has been issued.
The circular further states, "Currently, collecting CIB reports has been made much easier than before. Banks can now quickly collect the CIB report of a loan applicant using the Bangladesh Bank's CIB server."
