Bangladesh Bank (BB) has instructed banks to check borrowers' Credit Information Bureau (CIB) reports before disbursing new loans or granting rescheduling facilities in the agriculture sector.  

However, micro finance institutions linkage loans will be exempt from this requirement. Banks generally review CIB reports for large borrowers and those from other sectors.  

In a notice issued today, the central bank said loans disbursed without verifying CIB reports could allow borrowers to obtain multiple crop loans—up to Tk 2.50 lakh—from different banks without the lenders' knowledge. 

This increases the risk of default, it added.  

The central bank also noted that obtaining CIB reports has become easier, as banks can now quickly access them through Bangladesh Bank's CIB server.