Dhaka, March 15 -- Bangladesh Bank (BB) on Sunday issued a comprehensive policy for credit cards, doubling the loan limit to Tk 40 lakh from the previous Tk 20 lakh to encourage a cashless ecosystem.

The central bank also capped the maximum interest rate on credit card loans at 25 percent.

According to the new circular, banks can now provide up to Tk 20 lakh in unsecured loans (without collateral) and up to Tk 40 lakh against collateral. Previously, these limits were Tk 10 lakh and Tk 20 lakh, respectively.

The policy further specifies that cardholders can withdraw a maximum of 50 percent of their total credit limit in cash.

The central bank stated that the updated policy aims to reduce complexities as the use of credit cards as an al...