Bangladesh Bank has allowed banks to offer customers up to Tk10,000 in instant digital credit to pay essential expenses, including utility bills, healthcare costs, education fees, taxes and insurance premiums.
Unlike conventional consumer loans, the new “E-Payment Credit” will carry no interest. Banks will instead charge a fixed fee based on the amount borrowed and repayment period, which can be seven, 15 or 30 days.
The entire process, from application to disbursement, must be completed digitally.
The central bank introduced the facility through a circular issued on Sunday, saying it was designed to help customers meet recurring essential payments during temporary cash shortages while encouraging responsible use of digital transactions.
The credit cannot be withdrawn in cash or freely spent by borrowers. Banks must transfer the money directly through approved digital channels to the relevant service provider. Customers will not be allowed to transfer credit to another account or add it to a digital wallet.
The facility can be used to pay utility bills, mobile recharge, education fees, healthcare expenses, tolls and tickets, taxes and other government fees, deposit instalments and insurance premiums. Bangladesh Bank may add other eligible payments later.
Fees will vary according to the size and duration of the credit. For loans between Tk7,001 and Tk10,000, banks can charge a maximum of Tk35 for seven days, Tk70 for 15 days and Tk130 for 30 days.
At the lower end, credit between Tk50 and Tk250 will carry maximum fees of Tk3, Tk4 and Tk6 for the respective periods. For Tk3,001-Tk5,000, the maximum charges will be Tk20, Tk40 and Tk70.
The principal and applicable fee must be fully repaid on the eighth, 16th or 31st day from disbursement, depending on the selected tenure. Customers can repay earlier without any additional charge, including prepayment, early-settlement or foreclosure fees.
If a customer fails to repay on time, banks may impose a daily penalty. However, the daily charge cannot exceed the equivalent daily fee applicable to a 30-day credit of the same amount.
Banks will be allowed to use alternative digital credit-scoring models to determine customers’ eligibility and credit limits. Customers can be onboarded through their registered mobile numbers using OTP, two-factor or multi-factor authentication.
Banks may also use the service channels of mobile financial service providers, payment service providers, payment system operators and fintech companies.
Bangladesh Bank has also temporarily relaxed the requirement for an immediate Credit Information Bureau check until its API-based automated CIB system becomes fully operational around the clock.
Banks, however, must obtain the CIB report immediately after approving or disbursing the credit. If a subsequent check shows that a customer concealed an existing default, the bank must move to recover the credit as quickly as possible.
The facility will not be commercially available immediately. Banks wishing to introduce E-Payment Credit must first run it on a pilot basis for at least six months.
Following a positive evaluation of the pilot, a bank will have to finalise its product guidelines and secure approval from its board before launching the facility commercially.
