Banks will no longer be allowed to charge Credit Information Bureau (CIB) fees on agricultural and rural loans of up to Tk2.50 lakh.

The Agricultural Credit Department of Bangladesh Bank issued a circular on Monday, stating that when disbursing agricultural and rural loans under banks’ own management (without the involvement of NGOs or MFIs), no CIB report fees may be collected from clients.

Previously, banks had the option to waive this charge, but many institutions failed to comply, leaving clients deprived of the benefit.

The circular also noted that, apart from the prescribed interest, no additional charges such as processing or monitoring fees may be imposed on agricultural and rural loans.

Bangladesh Bank said the move aims to make it easier for farmers to access credit and that it will take immediate effect.