Bangladesh Bank Governor Abdur Rouf Talukder on Tuesday urged the country’s microfinance institutions to reduce the interest rate on loans for the poor.
“Making profit on loans given to the poor should not be the goal, but rather the interest rate should be reduced significantly for the good of the poor segment of the population,” he said at the meeting. a workshop in the city.
The Microcredit Regulatory Authority organized the workshop on “Microfinance in Bangladesh (annual statistics)” in its auditorium.
Microfinance institutions should also take more steps to accelerate the implementation of cashless transactions, the governor said.
He suggested reducing cash transactions in the microcredit sector to improve the transparency of microcredit operations across the country.
“The government wants to create a cashless society in the next five years and use mobile phones both as credit cards and as banks,” the BB Governor stressed.
At present, microfinance institutions in Bangladesh disburse around Tk 900 crore per day and Tk 2 lakh
crore per year, he told the workshop.
The interest rate for microfinance loans should be reduced in no time as the amount of these loans will increase significantly in the coming days, Rouf said.
“Now we need to reduce the use of cash. Binimoy, an interoperable digital transaction platform, was launched on Sunday,” he said.
“With its introduction, transactions can now be made between mobile financial services. We want to create a cashless society within five years. We want cell phones to become our credit cards as well as banks,” the governor noted.
It also launched four new electronic services – MRA Library Automation, e-clipping, e-archiving and MRA info.
Financial Institutions Division Secretary Sheikh Mohammad Salim Ullah spoke on the show as a special guest.
MRA Executive Vice President, Md Fasiullah chaired the workshop while MRA Executive Director, Laxman Chandra Debnath delivered the welcome address.
The Director of MRA, Mohammad Yakub Hossain, made a detailed presentation of the content of the workshop.
There are some 881 microcredit organizations in the country registered under the MRA.
Of these, some 747 conduct their operations across the country through some 22,000 branches. The realization rate of NGO loans is over 98%.
According to official data, more than 3.52 million families are covered by microcredit operations; if a family consists of four people on average, about 14 million people are directly or indirectly linked to microcredit.
According to data from the Credit and Development Forum, about 73% of rural finance comes from microcredit organizations.
Of the total amount of microcredit disbursed, some 40% goes to agriculture and about 31% to the small business sector.
The contribution of microcredit to GDP is 14.37%.