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Bangladesh Bank has directed banks to introduce a fully digital, fee-based ‘e-Payment Credit’ facility to help customers meet temporary financial needs and encourage digital transactions.
The central bank issued BRPD Circular No. 17 on Sunday (6 September), instructing all scheduled banks operating in Bangladesh to introduce the facility.
Under the new scheme, customers can borrow up to Tk10,000 without paying interest, subject to a fixed fee based on the loan amount and repayment period.
The credit cannot be withdrawn as cash or transferred to a customer’s bank account or wallet.
Instead, it can only be used through approved digital channels for specified payments, including utility bills, mobile recharges, education and medical expenses, tolls, ticket purchases, taxes and other government fees.
It can also be used to pay deposit instalments, insurance premiums and other fees approved by Bangladesh Bank.
Instead of interest, banks will charge fixed fees for these small, short-term loans.
For loans of Tk50 to Tk250, the fee will be Tk3 for seven days, Tk4 for 15 days and Tk6 for 30 days.
For Tk251–Tk500, the fees will be Tk5, Tk8 and Tk12, respectively, while loans of Tk501–Tk1,000 will carry fees of Tk7, Tk12 and Tk20.
For Tk1,001–Tk2,000, the fees will be Tk10, Tk20 and Tk30, and for Tk2,001–Tk3,000, Tk15, Tk30 and Tk50.
For larger amounts, loans of Tk3,001–Tk5,000 will carry fees of Tk20, Tk40 and Tk70 for seven, 15 and 30 days, respectively.
The fees for Tk5,001–Tk7,000 will be Tk25, Tk50 and Tk80, while the maximum credit of Tk7,001–Tk10,000 will carry fees of Tk35, Tk70 and Tk100 for the three repayment periods.
Customers must repay the principal and applicable fee in full by the 8th, 16th or 31st day, depending on the selected tenure.
No additional charge or prepayment fee can be imposed if the loan is repaid before the scheduled date.
If a customer fails to repay on time, a daily penalty or fee may be imposed. However, the total penalty cannot exceed the fee applicable to a 30-day loan.
Banks must process the facility through their approved mobile apps using an end-to-end digital process. Customers will not be required to provide a physical signature when applying.
Before launching the facility commercially, banks must run a minimum six-month pilot programme and submit an evaluation report to Bangladesh Bank.
The new facility is aimed at providing customers with quick access to small amounts of credit for essential payments while promoting greater use of digital financial services.