Bangladesh Bank has issued new regulations nearly doubling the credit limits for credit card holders, with the maximum permissible limit now set at BDT 4,000,000. The central bank has also fixed the maximum interest rate for credit card loans at 25 per cent per annum. Previously, customers could access up to BDT 1,000,000 without collateral and BDT 2,500,000 against collateral. Under the new framework, unsecured credit is allowed up to BDT 2,000,000, while secured credit may reach BDT 4,000,000.
The updated guidelines, released on Sunday, supersede the 2004 credit card regulations and include detailed instructions on credit limits, interest rates, fees, and consumer protection measures.
Overview of New Credit Card Limits and Conditions
| Parameter | Previous Policy | New Policy |
|---|---|---|
| Maximum unsecured credit | BDT 1,000,000 | BDT 2,000,000 |
| Maximum secured credit | BDT 2,500,000 | BDT 4,000,000 |
| Maximum interest rate | Not specified | 25% per annum |
| Cash withdrawal limit | Not specified | Up to 50% of credit limit |
| Interest-free period on cash withdrawal | N/A | Not applicable |
According to the central bank, borrowing limits are generally determined based on the applicant’s deposited funds or other secure collateral. Cardholders may withdraw cash up to 50 per cent of their total credit limit. While standard credit card purchases may benefit from an interest-free period, cash withdrawals will immediately incur interest.
The regulations also establish clear rules on fees and charges. Interest is only applicable to outstanding balances, and no activation fees may be levied before a card is operational. Late payment penalties may only be applied once per billing cycle. Banks must notify cardholders of any interest rate or fee changes at least 30 days in advance, either electronically or in writing.
Consumer protection is a key focus of the new rules. Banks and authorised recovery agents are prohibited from harassing borrowers or their families, and all communication regarding dues must be conducted within office hours. Additionally, banks must maintain a 24-hour helpline to block lost or stolen cards immediately.
Eligibility criteria have also been clarified: applicants must be at least 18 years old, while students aged 16 or older may hold supplementary cards under a primary cardholder. Applicants must provide a valid e-TIN certificate and a clean Credit Information Bureau (CIB) report.
Bangladesh Bank has emphasised that these new regulations aim to support responsible lending, enhance consumer protection, and strengthen risk management as credit card usage continues to grow rapidly across the country.