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27/01/2022
Laws of Bangladesh

The Bangladesh Bank Order, 1972 (President's Order)

( PRESIDENT'S ORDER NO. 127 OF 1972 )

Chapter VI

GENERAL

60. (1) The Bank may establish and maintain a Fund to be called the Rural Credit Fund to which shall be credited-
 
 
(a) an initial sum of Taka 50 lakhs to be subscribed by the Government; and
 
 
(b) appropriations of such amount from the surplus profits of the Bank as may be determined by the Bank in consultation with the Government.
 
 
(2) The Rural Credit Fund may be applied by the Bank to the following objects, namely:-
 
 
(a) The making of medium-term loans and advances to co-operative banks, repayable on the expiry of a fixed period, no exceeding five years from the date of the making thereof, against such security as the Bank may, from time to time, specify in this behalf;
 
 
(b) The making of medium-term and long-term loans and advances to rural credit agencies created or established by or under any law for the time being in force including scheduled banks on such terms and conditions as the Bank may, from time to time, specify in this behalf;
 
 
(c) Where the Bank is satisfied that any co-operative bank or any scheduled bank to which a loan or advance as is referred to in clause (4) of Article 16 has been made is unable to repay the same in time, the converting of such loan or advance, into a medium-term loan or advance, as the case may be, in accordance with the provisions of sub-clause (a);
 
 
(d) The making of short-term and medium-term loans and advances to scheduled banks as refinance against their loans and advances to co-operative societies or farmers or dealers supplying seed, machinery, fertiliser and other requisites of agriculture to farmers on credit:
 
 
Provided that such credit is granted on such terms and conditions as to security and otherwise; as may be laid down by the Bank; and
 
 
(e) The financing of a system of guarantees in accordance with rules to be made by the Bank to cover a portion of the bona fide loss that a scheduled bank is proved to the satisfaction of the Bank to have incurred in any transaction of loan or advance made under sub-clause (d).

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