BB likely to introduce digital credit facility today

Bangladesh Bank (BB) is likely to introduce a new digital credit facility today (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.�"BSS