BB to launch interest-free digital credit facility

Bangladesh Bank (BB) will introduce an “e-Payment Credit” facility, likely today (Sunday), to encourage cashless payments and help customers manage temporary cash shortfaThe credit can cover utility bills, mobile recharges, education and healthcare costs, travel expenses, taxes and government service fees, deposit instalments, and insurance premiums.

Banks will initially pilot the facility for at least six months before a commercial launch, which will require a pilot assessment and board approval.

The facility is strictly for digital payments. Customers cannot withdraw the credit as cash, transfer it to a bank account, or add it to a mobile wallet-the approved amount must go directly to the designated biller through an authorised digital payment channel.

Repayment periods will be seven, 15, or 30 days, with banks charging a prescribed service fee instead of interest.

A Tk 50-250 credit will carry a maximum fee of Tk 3 for seven days, Tk 4 for 15 days, and Tk 6 for 30 days. For Tk 7,001-10,000, the maximum fees will be Tk 35, Tk 70, and Tk 130, respectively.

Customers who repay on time will face no additional interest or early-settlement charges. Penalties may apply to overdue payments but cannot exceed the applicable daily service fee.

Banks must complete the entire process, including on boarding, credit approval, payment, and repayment, digitally, using secure authentication methods such as one-time passwords and two-factor or multi-factor authentication.

Banks may partner with mobile financial service providers, payment service providers, and fintech firms. The scheme will remain subject to BB’s rules on loan classification, risk management, customer protection, anti-money laundering, and data security.