In a landmark initiative to strengthen Bangladesh’s digital payment infrastructure, Bangladesh Bank has introduced updated, comprehensive guidelines for credit card usage, significantly increasing borrowing limits while bolstering consumer protection measures. The directive, issued on Sunday, 15 March 2026, is part of the central bank’s broader push to encourage cashless transactions and modernise the country’s credit card ecosystem.
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Enhanced Borrowing Limits
The new regulations double the maximum credit available on cards, allowing customers to borrow up to BDT 4 million, up from the previous ceiling of BDT 2 million. This updated policy replaces the 2004 credit card framework, reflecting technological advancements, rising consumer demand, and evolving financial practices.
Distinct borrowing limits have been introduced depending on the type of collateral:
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Unsecured (no collateral) credit card loans: increased from BDT 1 million to BDT 2 million.
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Secured (with liquid collateral) credit card loans: increased from BDT 2.5 million to BDT 4 million.
Banks are instructed to assess income, existing liabilities, and financial capacity before approving credit limits. For customers holding multiple cards across different banks, aggregate credit exposure must be considered to ensure responsible lending.
| Parameter | Details |
|---|---|
| Maximum Credit Limit | BDT 4,000,000 |
| Unsecured Credit Limit | BDT 2,000,000 |
| Secured Credit Limit | BDT 4,000,000 |
| Annual Interest Rate Cap | 25% on outstanding balance |
| Cash Withdrawal Limit | 50% of total credit limit |
| Minimum Applicant Age | 18 years (main card); 16 years (supplementary card) |
| Required Documents | Updated e-TIN, clean CIB report |
| Security Measures | Two-factor authentication, instant SMS/email alerts |
Interest Rates and Grace Period
The guidelines set the annual effective interest rate at a maximum of 25%, applied solely to outstanding balances rather than total bills. Customers who settle payments on time will continue to enjoy an interest-free grace period.
Cash withdrawals from credit cards do not qualify for interest-free terms. Cardholders may withdraw up to 50% of their total credit limit, with interest charged from the withdrawal date.
Strengthened Consumer Protection
To safeguard cardholders, banks are prohibited from levying activation fees, and only a single late fee can be applied for overdue payments. Any adjustments to interest rates or charges must be communicated 30 days in advance, either in writing or electronically.
Debt recovery processes are strictly regulated: banks and agents may not use physical or psychological intimidation, and contact regarding outstanding payments is limited to official working hours.
Eligibility and Security
Applicants must be 18 years or older with an updated e-TIN certificate and a clear CIB report. Students aged 16 and above may obtain supplementary cards linked to a primary cardholder.
Transactions are now required to include two-factor authentication and instant SMS or email alerts, strengthening security and transparency across all credit card operations. Bangladesh Bank emphasises that these modernised regulations are designed to foster a safe, efficient, and fully transparent cashless payment ecosystem in the country.
