The Bangladesh Bank has raised the fund for digital refinance scheme to Tk 500 crore from Tk 100 crore dedicated for disbursement of "digital nano loan" among marginalised people.

The decision was taken to increase financial inclusion of the marginalised people amid meet the growing demand of digital nano loan in the country, the central bank said in a circular today.

The other purposes of the fund are to encourage and habituate the marginalised people to do digital transaction, and enhance the progress of building "Smart Bangladesh", it said.

The Tk 100 crore refinance scheme was introduced on July 2 last year.

Participating banks of the refinance scheme will be able to disburse loans amounting to Tk 500 to Tk 50,000 to individual customers with up to 9 per cent interest under the scheme.

The loans have to be disbursed entirely digitally by using internet banking, mobile apps, mobile financial services, or e-wallet services, according to the central bank.