Bangladesh Bank has issued a warning over fraudulent attempts to exploit its ‘Udyog’ financing programme, which offers young entrepreneurs up to Tk 2 million in collateral-free financial support. The central bank said some individuals and groups were attempting to collect money from prospective applicants by promising to secure loans under the initiative.
The programme provides a combination of loans and grants, with Tk 1 million repayable and the remaining Tk 1 million offered as a grant. Designed to identify and support promising young entrepreneurs at the upazila level, the initiative aims to encourage new business ventures and create employment opportunities across the country.
In a warning published on social media on Thursday (5 November), Bangladesh Bank said it had recently become aware of attempts by certain individuals to obtain money from applicants by offering to arrange financing under the ‘Udyog’ programme.
According to the central bank, fraudsters are using mobile financial services, including bKash, and other payment channels to collect money from people hoping to receive financial assistance. Such individuals may approach prospective entrepreneurs with promises of guaranteed loan approval or claim that they can influence the application process.
Bangladesh Bank emphasised that all activities under the programme are being conducted through transparent, impartial and established procedures. No individual or group should be paid to guarantee access to financing or facilitate loan approval.
The central bank has therefore urged prospective applicants to refrain from making payments to anyone claiming to secure a loan on their behalf. Applicants should be particularly cautious about requests for advance payments through personal mobile financial service accounts or other unofficial channels.
Bangladesh Bank has also clarified that it does not operate any official Facebook page or other social media account under the name ‘Udyog’. This clarification is significant as fraudulent groups may use the programme’s name and the central bank’s identity to make misleading offers appear legitimate.
The institution warned that individuals or groups found creating fake social media pages or accounts to circulate misleading information or conduct fraudulent activities would face legal action under applicable laws, including legislation relating to information and communication technology.
The warning comes as Bangladesh Bank expands the reach of the programme to include aspiring entrepreneurs in the remaining 56 districts. Applications for this phase opened on 1 November and will remain open until 30 November.
The ‘Udyog’ initiative is intended to identify promising young business owners at the grassroots level and provide them with financial assistance to establish or develop their ventures. Access to finance is often a major challenge for first-time entrepreneurs, particularly those who lack sufficient collateral or an established business record.
By offering a combination of repayable loans and grants without collateral, the programme seeks to reduce some of the financial barriers facing young people who want to start businesses. The initiative also aims to encourage self-employment, strengthen local economic activity and generate new job opportunities.
The expansion to 56 additional districts creates an opportunity for more young people to seek financial support through the scheme. However, the central bank’s warning highlights the risks that can emerge when financial assistance programmes attract widespread interest.
Fraudulent advertisements, unofficial social media accounts and promises of guaranteed financing can mislead inexperienced applicants. Those seeking support should therefore rely on the prescribed application procedures rather than intermediaries claiming to have special connections with the authorities.
Bangladesh Bank has called on everyone concerned to remain alert, avoid misleading promotions and refrain from transferring money to individuals or groups promising to arrange loans. The central bank’s message is clear: the opportunity offered by the ‘Udyog’ programme should not become a means for fraudsters to exploit aspiring entrepreneurs.
