Sunday, 5th April 2026
Khabor Wala Desk
Published: 15th March 2026, 6:09 PM
In a major move aimed at modernising the nation’s digital payment ecosystem, Bangladesh Bank has issued updated and comprehensive guidelines for credit card usage, significantly increasing borrowing limits and enhancing consumer protections. The directive, released on Sunday, 15 March 2026, comes as part of the central bank’s broader strategy to encourage cashless transactions and streamline the credit card sector.
Under the new regulations, the maximum borrowing limit on credit cards has been doubled. Customers can now access up to BDT 4 million in credit, compared with the previous ceiling of BDT 2 million. The updated framework replaces the 2004 credit card policy, reflecting technological advancements and growing consumer demand.
The central bank has also introduced distinct limits based on collateral:
Unsecured (without collateral) credit card loans: maximum limit increased from BDT 1 million to BDT 2 million.
Secured (with liquid collateral) credit card loans: maximum limit increased from BDT 2.5 million to BDT 4 million.
Banks are instructed to evaluate each customer’s income, existing debt, and financial capacity rigorously before determining individual credit limits. In cases where a customer holds multiple cards across different banks, their aggregate credit exposure must be considered before applying the new limits.
| 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 for main card; 16 for supplementary card |
| Required Documents | Updated e-TIN, clear CIB report |
| Security Measures | Two-factor authentication, instant SMS/email alerts |
The updated guidelines set the annual effective interest rate for credit card loans at a maximum of 25%, applicable only to the outstanding balance, not the total bill. Consumers who pay their bills within the prescribed period will continue to enjoy an interest-free grace period.
Cash withdrawals through credit cards will not benefit from interest-free terms. Customers may withdraw up to 50% of their total credit limit in cash, with interest applicable from the date of withdrawal.
To protect cardholders and prevent harassment, the new guidelines prohibit banks from charging any fees at the time of card activation. In the event of late payment, only a single late fee may be imposed. Any changes to interest rates or fees must be communicated to customers at least 30 days in advance via written or electronic notice.
Banks and recovery agents are explicitly barred from engaging in physical or psychological intimidation during debt collection. Contact regarding overdue payments is limited strictly to office hours, ensuring consumers are not harassed at home.
Applicants must be at least 18 years old with an updated e-TIN certificate and a clean CIB report. Students aged 16 and above can obtain supplementary cards under the name of a primary cardholder.
Each transaction must now include two-factor authentication and instant SMS or email alerts, bolstering security across the payment system. Bangladesh Bank emphasises that these measures aim to establish a safe, efficient, and transparent cashless payment ecosystem across the country.
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