The government announced the establishment of the National CSI Development Bank Limited, a wholly-owned state-owned enterprise, yesterday.
In keeping with the government’s priority to diversify economic activities through financial inclusion and improving access to financing to rural agriculture and CSI sector, the government decided to upgrade Rural Enterprise Development Corporation Limited from a micro-financing institution to a full-fledged, non-deposit taking CSI Bank.
The bank is established as a specialised bank to promote the growth of rural, cottage and small industries in the country. The core mandates of the bank will be to provide affordable and easy access to finance and diversify economic activities through the promotion of cottage and small industries.
The CSI Bank will cater to the financial needs of the rural people involved in agriculture and livestock activities and provide credit facilities to small businesses and potential entrepreneurs who are engaged in manufacturing and export of domestically produced goods.
The CSI Bank has a paid-up capital of Nu 1.258 billion. Further, to boost the CSI lending and export financing, the government injected equity of Nu 250 million during the launch.
Through the promotion of easy access to credit for the rural people and enthusiastic entrepreneurs at an affordable rate, the Bank is expected to benefit the people, thereby, achieving the government’s vision of ‘Narrowing the Gap’.
In the move towards decongesting Thimphu, the corporate head office of the bank is relocated to Bondey, Paro.