Bangladesh Bank Raises Credit Card Limit to Tk40 Lakh

Bangladesh Bank has increased the maximum credit card limit from Tk25 lakh to Tk40 lakh to support the country’s growing digital payment system and rising consumer demand.

The central bank issued a new guideline on 15 March, which takes effect immediately for all scheduled banks and authorised card issuers.

According to the directive, credit card use in Bangladesh has grown rapidly due to technological advancements and a growing preference for convenient digital transactions. The new framework has been introduced to strengthen the cashless payment system and ensure greater transparency and consumer protection.

Using its authority under Section 45 of the Bank Company Act, 1991, the central bank updated the policy to create a safer and more reliable digital payment environment.

Under the guidelines, banks must follow stricter risk assessment procedures to encourage responsible lending and reduce financial risks.

The framework also introduces improved systems for handling customer complaints, card-related irregularities and transaction disputes. Banks and card issuers are required to ensure stronger security measures for electronic Point of Sale (POS) systems and online transactions.

The central bank said the rapid expansion of electronic payment infrastructure and incentive programmes has made a stronger regulatory framework necessary.

It added that the updated policy aims to strengthen financial stability and build consumer confidence in digital payments.

The guidelines also increase loan limits against credit cards. Unsecured loans can now reach Tk20 lakh, up from Tk10 lakh, while secured loans have been raised to Tk40 lakh from Tk25 lakh.

Loan limits will depend on deposits linked to the card, which serve as collateral. Cardholders will also be able to withdraw up to 50% of their total credit limit as cash.

The policy caps the maximum interest rate on credit card loans at 25%, which will apply only to the outstanding balance, not the total billed amount. While purchases may enjoy interest-free periods, cash withdrawals will not qualify for such benefits.

Banks can charge late payment fees only once for a bill. Any change in interest rates or service charges must be communicated to cardholders at least 30 days in advance through written or electronic notice.

To apply for a credit card, individuals must be at least 18 years old. Students aged 16 or above who are dependents of the primary cardholder may use supplementary cards.

Applicants must also submit a valid e-TIN certificate and a clear Credit Information Bureau (CIB) report.

To protect consumers from harassment, the guidelines prohibit banks and recovery agents from using mental or physical intimidation. The privacy of cardholders’ family members, friends and references must be respected.

Debt collection calls or visits are allowed only during office hours. Banks must also maintain a 24-hour helpline to quickly block lost or stolen cards.