Bangladesh Bank (BB) is likely to introduce a new digital credit facility on Sunday, allowing eligible customers to borrow up to Tk 10,000 for making essential payments through authorised digital channels.
The proposed “e-Payment Credit” facility is aimed at encouraging cashless transactions while helping customers meet temporary cash shortages, according to Bangladesh Bank sources.
Under the initiative, eligible customers will be able to borrow between Tk 50 and Tk 10,000 exclusively for making approved digital payments.
The credit can be used to pay utility bills, mobile recharge charges, education and healthcare expenses, travel costs, taxes and government service fees, deposit instalments and insurance premiums.
Banks are expected to initially operate the facility on a pilot basis for at least six months. Its commercial launch will depend on an assessment of the pilot programme and approval from the respective bank boards.
The facility will be strictly limited to digital payments. Customers will not be allowed to withdraw the credit as cash, transfer it to a bank account or add it to a mobile financial service wallet.
Instead, the approved amount will have to be paid directly to the designated biller through an authorised digital payment channel.
Customers will have repayment options of seven, 15 and 30 days, while banks will charge a prescribed service fee instead of interest.
For credit ranging from Tk 50 to Tk 250, the maximum service fee will be Tk 3 for seven days, Tk 4 for 15 days and Tk 6 for 30 days.
For credit ranging from Tk 7,001 to Tk 10,000, the maximum fees will be Tk 35, Tk 70 and Tk 130 for seven, 15 and 30 days, respectively.
Customers who repay within the stipulated period will not face any additional interest or early-settlement charges. However, penalties may be imposed for overdue payments, but such penalties cannot exceed the applicable daily service fee.
Banks will have to complete the entire process, including customer onboarding, credit approval, payment and repayment, digitally.
They will also be required to use secure authentication methods, including one-time passwords (OTPs), two-factor authentication or multi-factor authentication, to ensure transaction security.
Banks may partner with mobile financial service providers, payment service providers and fintech firms to operate the facility.
The initiative will remain subject to Bangladesh Bank's rules on loan classification, risk management, customer protection, anti-money laundering and data security.
The proposed facility is expected to promote wider use of digital payment channels while providing customers with access to small, short-term credit for essential payments.
