The Bangladesh Bank (BB) today relaxed its rules to facilitate lending for establishment of coal-based power plants and thus buy the dirty fuel to generate electricity.

The central bank said banks cannot lend more than 25 per cent of their paid-up capital according to the bank company law.

The upper limit will not be applicable for the next five years for financing to coal-fired power plants, the BB said in a notification.

But, the central bank will determine the upper ceiling beyond 25 per cent for the next five years, added the notification.