Bangladesh Bank Extends Student Banking Age to 25

In a major policy shift aimed at fostering financial literacy and supporting higher education, Bangladesh Bank has significantly overhauled the framework for youth accounts. The central bank’s Financial Inclusion Department issued a comprehensive circular on Monday, 9 February 2026, announcing that the age limit for “Student Banking” has been extended to 25 years, up from the previous threshold of 18.

From Schooling to Tertiary Support

This rebranding is more than merely cosmetic. What was formerly known as “School Banking” has been officially renamed “Student Banking” to reflect its broader demographic reach, which now encompasses university students and young researchers. By raising the age limit, the central bank aims to integrate young adults into the formal financial sector during their most critical years of academic and professional development.

One of the most transformative updates is the introduction of credit card facilities. Previously, student account holders were restricted to debit cards, limiting their ability to build a credit history or manage larger educational expenses. Under the new mandate, students can now access credit lines, a move expected to significantly empower those managing independent finances.

Enhanced Transactional Limits and Overseas Utility

To accommodate the rising costs of education and living, the central bank has drastically increased withdrawal and balance limits. Monthly ATM withdrawal caps have been raised to Tk15,000, with the provision to increase this to Tk25,000 upon a guardian’s application—a substantial leap from the previous Tk5,000 limit.

Furthermore, these accounts have been designed to facilitate international mobility. Students heading abroad for higher studies no longer need to open separate “student files” or specialised overseas accounts; the standard Student Banking account is now sufficient for international transactions and the receipt of legal remittances.

Key Changes in Student Banking Regulations (2026)

Low-Interest Educational Loans

Recognising the financial burden of modern education, the new policy allows students to secure loans for purchasing essential materials, such as laptops or research equipment, backed by a guardian’s guarantee. Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan confirmed that the interest rate for such loans is strictly capped at 7%, ensuring that credit remains accessible and affordable for the student population.

This initiative is expected to boost the country’s deposit base while simultaneously equipping the next generation with the tools necessary for modern financial management.