Bangladesh Bank Revises Credit Card Policy

Bangladesh Bank has announced a major revision of credit card regulations, nearly doubling the maximum borrowing limits for cardholders and strengthening consumer protection measures. The highest permissible credit limit has been raised to BDT 4,000,000, while the maximum interest rate on credit card loans has been capped at 25 per cent per annum.

Previously, customers could borrow up to BDT 1,000,000 without collateral and BDT 2,500,000 against collateral. Under the new policy, unsecured credit is allowed up to BDT 2,000,000, and secured credit can reach BDT 4,000,000. The updated rules, issued on Sunday, replace the 2004 regulations and provide comprehensive guidance on limits, interest, fees, and customer safeguards.

Key Highlights of the New Credit Card Regulations

The guidelines specify that credit limits are determined primarily by the applicant’s bank deposits or other secure collateral. Cardholders may withdraw up to half of their total credit limit in cash. While purchases may benefit from an interest-free period for a defined duration, cash withdrawals will accrue interest immediately.

The circular also lays down strict rules regarding fees and charges. Interest applies only to outstanding balances, activation fees are prohibited before card issuance, and late payment penalties may only be charged once per billing cycle. Any change to interest rates or fees must be communicated to cardholders at least 30 days in advance, either in writing or electronically.

Consumer protection has been emphasised throughout the new framework. Recovery agents and banks are forbidden from harassing borrowers or their families, and communications must be limited to office hours. Banks are also required to operate a 24-hour helpline for lost or stolen cards to ensure immediate blocking.

Eligibility requirements have been clarified: applicants must be at least 18 years old, although students aged 16 and above may obtain supplementary cards linked to a primary cardholder. A valid e-TIN certificate and a clean Credit Information Bureau (CIB) report are also mandatory.

Bangladesh Bank stated that these measures aim to expand responsible lending, enhance risk management, and protect consumer rights as the use of credit cards continues to grow rapidly nationwide.