In a major step towards modernising the nation’s digital financial ecosystem, Bangladesh Bank has unveiled updated and comprehensive guidelines for credit card usage, significantly raising borrowing limits and reinforcing consumer protection measures. The directive, issued on Sunday, 15 March 2026, forms part of the central bank’s ongoing efforts to promote cashless transactions and strengthen the transparency and efficiency of the country’s credit card sector.
Enhanced Borrowing Limits
Under the new framework, the maximum credit available on cards has been doubled, allowing customers to borrow up to BDT 4 million, up from the previous limit of BDT 2 million. The updated policy replaces the 2004 credit card guidelines, reflecting technological advancements, evolving consumer needs, and modern financial practices.
Distinct limits have been introduced depending on the type of collateral:
Unsecured (no collateral) credit card loans: increased from BDT 1 million to BDT 2 million.
Secured (with liquid collateral) credit card loans: increased from BDT 2.5 million to BDT 4 million.
Banks are instructed to rigorously assess applicants’ income, existing debts, and overall financial capacity before approving credit limits. For individuals holding multiple cards across different banks, aggregate credit exposure must be considered to ensure responsible lending and avoid over-indebtedness.
| 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 (main card); 16 years (supplementary card) |
| Required Documents | Updated e-TIN, clear CIB report |
| Security Measures | Two-factor authentication, instant SMS/email alerts |
Interest Rates and Grace Period
The guidelines stipulate a maximum annual effective interest rate of 25%, applicable solely to outstanding balances rather than the total bill. Customers who settle their payments on time will continue to benefit from an interest-free grace period, maintaining affordability for regular users.
Cash withdrawals using credit cards do not enjoy the interest-free benefit. Customers may withdraw up to 50% of their total credit limit in cash, with interest charged immediately from the date of withdrawal.
Strengthened Consumer Protections
To safeguard cardholders, the new guidelines prohibit banks from levying any activation fees. In case of late payment, only a single late fee may be imposed. Any changes to interest rates or charges must be communicated at least 30 days in advance, through written or electronic notice.
Debt recovery measures are also strictly regulated: banks and collection agents are forbidden from engaging in physical or psychological intimidation, while contact regarding overdue payments is restricted strictly to official office hours.
Eligibility and Security
Applicants must be 18 years or older, possess an updated e-TIN certificate, and have a clean CIB report. Students aged 16 and above are eligible to obtain supplementary cards under a primary cardholder.
Every transaction now requires two-factor authentication, coupled with instant SMS or email alerts, further strengthening the security and transparency of the payment process. Bangladesh Bank emphasises that these modernised regulations are intended to create a safe, efficient, and fully transparent cashless payment ecosystem, promoting financial inclusion while protecting consumers.
With these reforms, Bangladesh Bank aims to foster confidence in digital payments, encourage responsible borrowing, and ensure a secure, technologically advanced financial environment for all cardholders.