BB relaxes Islamic refinance fund account policy

Bangladesh Bank (BB) has relaxed the policy of the "Islamic Refinance Fund Account" which has been formed for Shariah-based funding with the particular aim of creating jobs in rural areas by helping existing agro-based industries and creating new entrepreneurs, reports BSS.

"From now on, Islamic banks and Financial Institutions (FIs) can invest for one year period. Earlier, they could invest for three months," said a BB circular in the city on Sunday.

Islamic banks and FIs will return the refinance fund to the Bangladesh Bank every year including profit in the cumulative installment, the circular added.

The BB created the fund against the backdrop of repeated request from these Islamic banks as they were not able to get any fund from the existing interest-based refinance funding schemes.