Bangladesh Bank Issues New Credit Card Guidelines, Raises Loan Limits

Bangladesh Bank has issued new guidelines for the use of credit cards. Under the new directive, the loan limit that can be disbursed through credit cards by banks has been increased from Tk 25 lakh to Tk 40 lakh.

At the same time, the limit for unsecured loans has been raised from Tk 10 lakh to Tk 20 lakh, doubling the previous amount.

According to the guideline issued on Sunday, 15 March, the use of credit cards in everyday transactions has been increasing rapidly in recent times. Many people are now using credit cards to pay for various goods and services instead of carrying cash. In light of this growing trend, the central bank has updated the previous policy and issued the new guideline to bring greater discipline to credit card management and to align with the evolving situation.

The guideline also places emphasis on customer protection, risk management, and the resolution of credit card–related disputes. At the same time, banks have been instructed to ensure responsible lending practices.

The new directive provides detailed guidance on issues such as types of credit cards, customer eligibility, determination of credit limits, interest rates, card issuance and marketing, billing and payment collection procedures, protection of customer privacy, and security arrangements.

Bangladesh Bank said the new guideline has been prepared after reviewing various issues related to credit cards, including customer complaints, fraud, complexities in transaction settlements, and dispute resolution. From now on, banks and financial institutions will have to operate their credit card activities in accordance with these guidelines.

DBTech/SMEH/EK/OR