Utility NOC mandatory for industrial NBFIs loans

Wpfreeware 6:49 AM Utility NOC for Industrial loans

Utility NOC mandatory for industrial NBFI loans

A No Objection Certificate (NOC) from utility providers is mandatory requirement for obtaining industrial loans from Non-Banking Financial Institutions (NBFIs).

The Bangladesh Bank announced on Thu Apr 25, 2024 that non-bank financial institutions (NBFIs) would not be able to approve loans to new industries unless these industries have obtained no-objection certificates (NOCs) from their respective electricity and gas suppliers. This new regulation was decided upon during a cabinet committee meeting on February 7, 2024.

Furthermore, the cabinet committee decreed that new industrial establishments outside of designated economic or industrial zones would not be granted electricity and gas connections. This measure aims to streamline industrial development and ensure adequate infrastructure support within designated zones.

Notably, a similar directive was previously issued to commercial banks, ensuring a consistent approach across both banking and non-banking financial sectors.

Source: Bangladesh Bank's circulars

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