In a landmark move to bolster financial inclusion among the youth, the Bangladesh Bank has overhauled the framework for student accounts, significantly raising the age eligibility and introducing credit facilities. Under the newly issued guidelines from the Financial Inclusion Department, the initiative formerly known as “School Banking” has been rebranded as “Student Banking,” reflecting its expanded scope.
Major Policy Shifts
The most notable change is the adjustment of the age threshold. Previously, specialised student accounts were restricted to those under the age of 18. The new policy extends this privilege to all students under 25 years of age, effectively encompassing university-level scholars and postgraduates.
Beyond mere age extension, the central bank has fundamentally altered the utility of these accounts. For the first time, student account holders will be eligible to apply for credit cards, a departure from the previous “debit-only” restriction. Furthermore, to support the rising costs of higher education, students can now access education loans at a capped interest rate of 7%, provided they have a guardian’s guarantee.
Enhanced Transaction Limits
Recognising the inflationary pressures and the diverse needs of modern students, the Bangladesh Bank has significantly increased withdrawal and deposit thresholds. The default monthly ATM withdrawal limit has been tripled from Tk5,000 to Tk15,000, with a provision to increase this to Tk25,000 upon a formal request from a legal guardian.
Comparison of Student Banking Guidelines
| Feature | Previous (School Banking) | New (Student Banking) |
| Eligibility Age | Under 18 years | Under 25 years |
| Card Facilities | Debit Cards only | Debit and Credit Cards |
| Monthly ATM Limit | Tk5,000 | Tk15,000 (up to Tk25,000) |
| Max Account Balance | Limited | Tk3 Lakh (300,000) |
| Max Monthly Deposit | Restricted | Tk25,000 |
| Loan Interest Rate | N/A | Capped at 7% |
Facilitating Global Education
The new policy is particularly advantageous for students pursuing degrees overseas. The central bank has clarified that these accounts can now be used for international transactions, eliminating the immediate need for a separate “student file” for those heading abroad. Additionally, students are permitted to receive legal remittances directly into these accounts, streamlining the process for those receiving financial support from family members working in foreign jurisdictions.
A Vision for Financial Literacy
Bangladesh Bank spokesperson and Executive Director, Arif Hossain Khan, emphasised that the reform aims to make the banking system more accessible to the younger generation. By allowing higher deposit limits and cheaper credit for educational materials, the central bank hopes to foster a culture of formal savings and responsible credit management among the youth.
The directive has been dispatched to the Managing Directors and Executive Directors of all scheduled banks for immediate implementation.