Bangladesh Bank has directed all banks not to grant any kind of loan facilities for tobacco farming as it poses a serious health hazard.
The central bank yesterday in a circular said no loan for tobacco farming would be given to farmers directly or in any other form.
The circular also said the loan given earlier must be realised on time and their payment schedule would not be extended.
The central bank said the decision was taken to improve people's health, financial condition and to discourage tobacco farming, which is harmful to the environment.
The Bangladesh Bank advised the banks to increase the flow of agricultural loans to the farmers who are now engaged in tobacco farming so that they can produce alternative crop under bank loan facility.
Apart from tobacco users, people including children directly involved in the tobacco farming and production are exposed to health hazard.
As a result of expansion of tobacco cultivation the amount of agricultural land is shrinking which is increasingly creating food crisis in a densely populated country like Bangladesh.
Huge amount of fuel is burnt for drying green tobacco leaves, which emits smoke with tobacco odour and carbon-di-oxide. It also encourages felling of trees and thus contributing to the adverse impact of climate change, the circular said.