The murder took place early Wednesday. The villagers handed the alleged killer over to the local police.
The corpse of Janarul Islam, 30, a resident of the village, was sent to Kushtia Sadar Hospital morgue for autopsy.
Police said Rafiqul Islam Rafique locked in a brawl with his wife's younger brother Janarul around 12am over some borrowed money.
At one stage, Rafique started hacking his brother-in-law with a machete leaving him critically injured. He was whisked off to the health complex where physicians declared him dead.
Daulatpur police station Officer-in-Charge Shahidul Islam Shahin said: “Rafique has hacked his brother-in-law over a trivial financial matter and has been detained. The body was sent to the district hospital morgue for autopsy in the morning. Legal action will be taken in the incident.”