United News of Bangladesh

Once regarded as an exclusive financial tool for the elite and high-net-worth travelers, credit cards have rapidly transitioned into an essential daily companion for the middle-class and younger generation in Bangladesh. From grocery shopping and hospital bills to online purchases and utility payments, the credit card is increasingly being viewed as a "digital alternative to cash" within the country's burgeoning digital economy. In response to this growing demand, Bangladesh Bank has significantly overhauled credit card regulations. Under the new policy, the borrowing limit for credit cards has been doubled: Unsecured Loans: The limit for loans without collateral has been increased to Tk 20 lakh from the previous Tk 10 lakh. Secured Loans: Against collateral, the limit has been raised to Tk 40 lakh from Tk 20 lakh. Financial analysts suggest this move will provide a crucial cushion for high-cost medical emergencies, foreign education expenses, and business travel while further accelerating the nation’s "cashless" ambitions. One of the primary drivers of credit card popularity among salaried professionals and young entrepreneurs is the 45-day grace period. If the total bill is settled within this timeframe, the cardholder essentially enjoys a short-term, interest-free loan. Industry data underscores this shift: Active Cards: There are currently approximately 54 lakh credit cards in use in Bangladesh. Transaction Volume: Monthly credit card transactions are averaging over Tk 3,000 crore, with recent figures exceeding Tk 3,500 crore. Spending Patterns: Domestically, the highest spending occurs at department stores, supershops, and retail outlets, followed by utility bills and healthcare.   The use of dual-currency cards is also surging internationally. Interestingly, Bangladeshi debit cards are seeing the highest transaction volumes in the United Kingdom, largely driven by the high number of Bangladeshi students residing there. To combat the rising risk of digital fraud, banks are introducing cutting-edge security: Numberless Cards: Institutions like Prime Bank and Mastercard have launched "numberless" cards where CVV and expiry details are hidden from the physical card and stored only in mobile apps. Regulatory Safeguards: Bangladesh Bank now mandates 24-hour helplines for reporting lost cards and has strictly prohibited the harassment of customers during loan recovery. Diversification: Islamic and Student Cards The market is also diversifying to cater to specific demographics. Shariah-based Islamic credit cards, which utilize a service charge (Ujrah) instead of conventional interest, are gaining traction among the youth. Furthermore, specialized products like Student Credit Cards (often backed by parental guarantees) and Freelancer Cards for international software and subscription payments are becoming widely available. Despite the benefits, financial experts warn that unplanned usage can lead to a debt trap. Relying on "minimum payments" can cause high interest rates to compound rapidly. Industry experts advise cardholders to strictly adhere to payment schedules and maintain digital hygiene—such as never sharing OTPs or PINs—to ensure the credit card remains a tool for convenience rather than a financial burden.

Industries Minister Khandakar Abdul Muktadir on Saturday said the government is firmly committed to reopening closed state-owned sugar mills while ensuring the interests of sugarcane farmers, workers and the long-term profitability of the mills. “The mills are assets of the people of Bangladesh and it is the government’s responsibility to ensure their honest and effective use. We want the closed factories to resume production, create employment opportunities and contribute to revitalising local economies,” he said. Commerce Minister stresses cut in red tape, faster business approvals to attract investment The minister came up with the remarks while addressing a views-exchange meeting with sugarcane farmers on  the premises of Panchagarh Sugar Mills Limited as the chief guest. A number of sugar mills in the country remain shut while many operational mills are functioning under various limitations, he said. Modernisation, renovation and the introduction of new technologies are essential for their effective revival as most of the mills are between 50 and 70 years old, he said. Besides, some mills would require installation of new machinery, while others would need infrastructure renovation or alternative operational plans, he said. The minister also said functioning industrial establishments generate not only direct employment but also create economic opportunities for many people through related activities.  “When employment increases, money circulation in people’s hands rises, local economies become more active and poverty declines. Keeping that goal in mind, the government is advancing efforts to revive industries,” he added. Chairman of Bangladesh Sugar and Food Industries Corporation (BSFIC) Md Jahangir Alam, Panchagarh-1 MP Barrister Nawshad Zamir, Industries Secretary Md Obaidur Rahman, BSCIC Chairman Md Saiful Islam, Panchagarh Deputy Commissioner Mosammat Shukria Parvin, District Council Administrator Md Touhidul Islam among others attended the programme. Sugarcane farmers’ representatives, labour leaders and local dignitaries were also present. Panchagarh Sugar Mills Limited was established during 1966-69 with a daily crushing capacity of 1,016 metric tonnes and began commercial production in 1969-70. The mill is currently operated under the Bangladesh Sugar and Food Industries Corporation.

British High Commissioner to Bangladesh, Sarah Cooke, on Thursday reaffirmed the UK government’s commitment to supporting the transformation of Bangladesh Bank into a modern, technology-driven, and robust central bank. The commitment was made during a courtesy call with the Governor of Bangladesh Bank, Md. Mostaqur Rahman, at the central bank's headquarters in the capital. The meeting covered a wide range of bilateral cooperation issues, with a particular focus on the modernization of the financial sector, capacity building for the central bank, and the enhancement of human resources. A significant portion of the discussion centered on anti-money laundering (AML) efforts and the recovery of laundered assets. Both parties expressed a firm resolve to strengthen coordination with relevant UK authorities to recover assets smuggled abroad. The talks also touched upon critical legislative reforms, including the ‘Bank Resolution Act,’ aimed at ensuring long-term stability and good governance in the banking industry. In a move toward greater digital integration, the High Commissioner and the Governor discussed: Digital Bank Statement Verification: Implementing a digital system to verify bank statements provided during visa applications to prevent fraud. Combating Illegal Migration: Joint efforts to prevent illegal migration and the use of forged documents. FATF Mutual Evaluation: Preparations for the upcoming Financial Action Task Force (FATF) assessment to ensure Bangladesh's compliance with global financial security standards. Governor Mostaqur Rahman expressed his gratitude for the UK’s consistent support in Bangladesh’s development journey. He reiterated the central bank’s firm commitment to building a cashless society and a resilient digital payment ecosystem. "We are focused on ensuring transparency and good governance within the financial sector through modern technology," the Governor noted during the exchange. The meeting was also attended by Deputy Governor of Bangladesh Bank Dr. Habibur Rahman, Stolen Asset Recovery Consultant Farhanul Ghani Chowdhury, and representatives from the British High Commission, including Emma Wind and Issam Musaddeque.

Shops and shopping malls across the country will be allowed to remain open until 10 pm from Tuesday (May 12) to facilitate Eid-ul-Azha shopping amid the ongoing energy crisis. The decision was announced by the Bangladesh Shop Owners Association in a press release issued on Thursday evening following discussions with the Ministry of Power, Energy and Mineral Resources. Under existing government austerity measures, shops are required to close by 7pm. Govt to hold talks with opposition on energy crisis, open to pragmatic proposals: PM On May 4, the association formally requested the ministry to extend business hours until 11pm to accommodate the increased shopping rush ahead of Eid. Confirming the development, Bangladesh Shop Owners Association President Md Helal Uddin said the government approved the extension after consultations with the Prime Minister, although no formal notification would be issued. “The minister informed that shops can remain open until 10pm. However, he stressed that decorative lighting and unnecessary electricity consumption in shops and shopping malls must be avoided,” Helal Uddin said.

The Bangladesh Securities and Exchange Commission (BSEC) has imposed Tk 22.75 crore fine on Vanguard Asset Management Limited for violating securities laws in connection with two separate investment transactions made through the Vanguard AML Rupali Bank Balanced Fund. The decisions were taken at a meeting of the BSEC held on Tuesday with its Chairman Khondoker Rashed Maqsood in the chair, according to a press release issued on Wednesday. In the first case, Vanguard Asset Management Limited, in 2013, invested a total of Tk 1.50 crore from the Vanguard AML Rupali Bank Balanced Fund into shares of Bengal Poly & Paper Sack Limited, at Tk 25 per share, including a Tk 15 premium, on the face value of Tk 10, in violation of securities laws. The commission found this investment unlawful and ordered Vanguard to refund Tk 5.74 crore (principal plus applicable returns) to the fund within 30 days of the order. As Vanguard failed to deposit the amount within the stipulated deadline, the BSEC additionally resolved to impose a fine of Tk 6.75 crore on the company. In the second case, in 2017, Vanguard Asset Management invested a total of Tk 6 crore from the same fund into 48 lakh shares of AFC Health Limited at Tk 12.50 per share, including a Tk 2.50 premium, over the face value of Tk 10, again in breach of securities laws. The commission ordered Vanguard to return Tk 14.85 crore (principal and returns) to the fund within 30 days. Following its failure to comply, Vanguard was further fined Tk 16 crore in this case. The BSEC also decided that if Vanguard fails to pay the imposed fines within seven days after the expiry of the 30-day deadline, the amounts will be treated as the company's own liability. An additional fine of Tk 10,000 per day will be levied for each day of continued non-payment beyond that period. It also held the Investment Corporation of Bangladesh (ICB), which serves as trustee of the mutual fund concerned, accountable for failing to exercise adequate oversight and discharge its duties properly, a lapse that contributed to the losses suffered by unit-holders of the fund. Accordingly, the BSEC resolved to impose a fine of Tk 15 lakh on ICB. Separately, the BSEC noted that the fund's auditor, Malek Siddiqui Wali & Co, Chartered Accountants, failed to clearly flag in its audit report the matter of the fund retaining 99 percent of these illegal investments. The commission resolved to refer the firm to the Financial Reporting Council for appropriate action.

State-owned Janata Bank PLC has issued an auction notice for the assets of Globe Janakantha Shilpa Paribar, including the iconic 15-storey ‘Janakantha Bhaban,’ to cover for defaulted loans amounting to Tk 215 crore. Interested bidders have been directed to submit their applications to the court by 2:00 pm on April 28. Applicants must include a pay order or bank draft equivalent to 10 percent of the reserved price. The reserved price will be disclosed during the auction, and the bidding process will follow court regulations. The bank noted in the advertisement that neither the bank nor the court would take responsibility for any disputes arising after the sale of the assets. The loan was disbursed in 2021 through Janata Bank’s Dilkusha Corporate Branch, reportedly following a recommendation from Salman F. Rahman, the then-private industry and investment adviser to former Prime Minister Sheikh Hasina. Records show that in August 2020, Salman F. Rahman sent a letter to the Janata Bank Chairman recommending Tk 250 crore in working capital for Globe Janakantha. The recommendation cited financial losses allegedly incurred by the company during the BNP-Jamaat alliance government. Subsequently, in September 2021, the Janata Bank board approved Tk 225 crore in working capital for five concerns under the group. The Bangladesh Bank issued a No Objection Certificate (NOC) for the loan two months later. Globe Janakantha Shilpa Paribar consists of eight entities, including Globe Metal Complex, Globe Insecticides, Globe Cables, and the daily newspaper 'Janakantha.' However, most of these units are currently inactive. In March, the daily 'Janakantha' suspended both its print and online operations. Hafizur Rahman, the group’s former Chief Operating Officer (COO), told media outlets that the industrial group is currently burdened with massive debt. Janata Bank’s Non-Performing Loan (NPL) Crisis Janata Bank is currently struggling under a heavy burden of defaulted loans from large conglomerates such as Beximco, S. Alam, Thermex Group, and AnnonTex Group. By the end of last year, the bank's total disbursed loans stood at Tk 97,934 crore, of which 74 percent has been identified as bad or defaulted loans. The Managing Director of Janata Bank, Md. Mujibur Rahman, stated that the bank prioritizes auctions under the Money Loan Court Act to recover defaults. "Response to auctions is not always positive, particularly for large amounts. If recovery through auction fails, we proceed with legal lawsuits as per the law," he said. Following the fall of the Awami League government on August 5, the bank has initiated several cases against loan defaulters. Last year, Janata Bank managed to recover Tk 900 crore in defaulted loans.

Commerce Minister Khandakar Abdul Muktadir on Tuesday said the Bangladesh-US trade agreement should be utilised for mutual benefit, stressing that there is no reason for concern over the deal. He made the remarks while talking to reporters after a meeting with US Assistant US Trade Representative for South and Central Asia Brendan Lynch at the conference room of his ministry in the morning. The minister said international agreements are always built on mutual cooperation. “Any international agreement is shaped by both parties. It is designed to create a win-win situation, taking into account the interests of both sides. Therefore, there is nothing to worry about this agreement,” he said. He noted that the current government did not initiate the agreement but inherited it as part of state continuity. “A state-level agreement is not like a personal contract that can be cancelled at will. It is a reality, and we want to utilise it to expand trade and investment in the country,” Muktadir added. He also referred to a recent investigation initiated by the United States, saying Bangladesh had sought clarification on the matter and responded with its observations after receiving explanations. “We have clearly stated that such an investigation would have been more positive if it had not been initiated in the context of the existing agreement,” he said. Highlighting Bangladesh’s production and trade reality, the minister said the country does not have overcapacity in any sector and rejected allegations of dumping. “We import most of our goods. Our exports, particularly in the ready-made garment sector, operate under strict international compliance. There is no scope for labour law violations or child labour,” he said. On the possibility of cancelling the agreement with the US, Muktadir said the government, as the elected representative of the people, always prioritises national interest. “If any clause in the agreement goes against Bangladesh’s interests, there is scope for amendment within the agreement itself. It has a self-correcting mechanism,” he said. The minister added that there is no reason for panic or worry regarding the issue. During the meeting, both sides discussed strengthening Bangladesh-US trade and investment relations, along with other issues of mutual interest. Senior officials, including Secretary (Routine Duty) of the Ministry of Commerce Md Abdur Rahim Khan, were present.

By receiving remittances directly to bKash account through ‘Ria’, an international money transfer operator (MTO), customers can enjoy BDT 200 instant cashback during the Eid-ul-Adha. Receivers will get the cashback once they receive a minimum of BDT 20,000 directly into their bKash accounts, excluding the government’s 2.5% incentive. The cashback can be availed once during the campaign period till May 25, 2026. The joint campaign by Ria and bKash aims to encourage expatriates to send money through formal banking channels. Through Ria Money Transfer and its app, expatriates can send remittance from around the world including the UAE, Malaysia, Italy, France, Switzerland, Portugal, Germany, South Africa, Australia, Netherlands, Belgium, Ireland, and Austria directly to bKash accounts of their near and dear ones. According to Bangladesh Bank regulations, expatriates can send up to BDT 250,000 per transaction to a bKash account. FAO signs deal with bKash to enable faster cash assistance, incentive distribution Besides, relatives of the expatriates will instantly get Tk 25 per thousand as government incentives over the remittance they receive in bKash accounts through Ria. Expatriates can also enjoy the best exchange rates at Ria while sending remittances. Due to such benefits, sending remittances directly to bKash accounts through Ria has quickly gained trust and confidence of expatriates and their relatives. Meanwhile, expatriates’ relatives can cash out remittances from nearly 2,500 ATM booths of 19 top commercial banks across the country for a charge of only Tk 7 per thousand, using the bKash app or dialling *247#. Apart from cash out, dear ones of the expatriates can make various types of payment, pay utility bills, send money, recharge mobile, pay educational or government fees, donate, open savings etc with their bKash account from the comfort of home.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Monday (May 4) formally inaugurated a new day-care center for the children of its employees at the BGMEA Complex in Uttara, Dhaka. The 'BGMEA Md. Reazuddin Day-Care Center,’ named after one of the pioneers of the RMG industry who also served as the first vice-president of BGMEA, was inaugurated by current BGMEA President Mahmud Hasan Khan. BGMEA seeks policy support in budget to face challenges Several prominent BGMEA leaders attended the ceremony, including Senior Vice President Enamul Haque Khan, Vice President Md. Rezwan Selim, Vice President (Finance) Mizanur Rahman, Vice President Md. Shihab Uddoja Chowdhury, Director Shah Rayed Chowdhury, Director Mohammad Sohel, and Acting Secretary Major Md. Saiful Islam. Speaking at the inauguration, BGMEA President emphasized the importance of the organization's staff. "The officers and employees of BGMEA are the main driving force of the organization," he said. "This modern day-care center has been launched to ensure the security and proper development of the children of our working parents. As a result, employees will be able to perform their duties with greater peace of mind, leaving their children in a safe environment," he added. According to BGMEA sources, the center is equipped with modern amenities. It offers an environment suitable for children’s play and primary education, along with experienced supervisors. The facility maintains high standards of cleanliness to support the physical and mental development of the children. Following the inauguration, the BGMEA president and other leaders toured the center’s rooms and inspected the facilities designated for the children. Employees welcomed the initiative, stating that having such a facility within the office premises would reduce worries during their professional lives. BGMEA noted that it regularly implements various welfare activities to create a worker-friendly environment.

An internal Bangladesh Bank (BB) document has revealed significant exposure of the country’s banking sector to high-risk of defaulted loans linked to six major business conglomerates. The confidential analysis highlights widespread vulnerabilities across multiple banks, raising concerns over asset quality and risk management in the financial sector. The document, titled “Selected Lead Banks, Impacted by Six Groups”, categorises affected financial institutions based on their exposure to non-performing loans associated with six business groups. The groups or individuals identified are: Saifuzzaman Chowdhury, S Alam, Beximco, Sikdar, Nassa and Orion. According to the data, Islami Bank Bangladesh PLC appears in five of the six exposure categories, indicating extensive involvement across multiple high-risk loan portfolios. Newly consolidated Sammilito Islami Bank PLC is listed under all six groups, suggesting that its balance sheet carries significant inherited non-performing assets from merged weak banks. Other banks appearing frequently across the exposure lists include First Security Islami Bank, Social Islami Bank, Union Bank, Janata Bank, Rupali Bank, IFIC Bank, United Commercial Bank, AB Bank and Al-Arafah Islami Bank. State-owned banks such as Sonali Bank and Agrani Bank are also shown to have notable exposure to defaulted loans linked to the identified groups. In response to the rising systemic risk, Bangladesh Bank has initiated steps to assign selected institutions as “lead banks” to coordinate recovery efforts in collaboration with international firms. The criteria for selecting lead banks reportedly prioritise institutions with prior experience in handling international non-disclosure agreements (NDAs), enabling them to manage complex negotiations and recovery processes. The designated lead banks for each group are as follows: Saifuzzaman Chowdhury group: United Commercial Bank PLC (lead), Islami Bank Bangladesh PLC, Al-Arafah Islami Bank PLC S Alam group: Islami Bank Bangladesh PLC (lead), Janata Bank PLC, Sammilito Islami Bank PLC. Beximco group: National Bank PLC (lead), Janata Bank PLC Sikdar group: IFIC Bank PLC (lead), Sammilito Islami Bank PLC, Agrani Bank PLC. Nassa group: National Bank PLC (lead), IFIC Bank PLC, Al-Arafah Islami Bank PLC. Orion group: United Commercial Bank PLC (lead), Agrani Bank PLC. The document also states that banks undergoing or scheduled for merger will not be eligible to act as lead banks, reflecting ongoing policy considerations within Bangladesh Bank. Officials said the move indicates a shift towards a more coordinated and externally supported recovery strategy aimed at addressing long-standing default loan problems in the banking sector.