Bangladesh Bank has introduced a comprehensive set of guidelines governing the operation of Shariah-compliant Islamic credit cards to ensure strict adherence to Islamic financial principles across commercial banks.
Under the new directives, financial institutions are required to align all products, agreements, transaction processes, fees, charges, and operational workflows with Shariah law.
To replace conventional interest mechanisms, banks must operate under the principles of Qard (interest-free loan) and Ujrah (service fee).
Purchases, cash withdrawals, and utility bill payments made using these cards will be classified as Qard Hasanah (interest-free loans), meaning no additional money, profits, or financial perks can be collected from customers on these transactions.
Furthermore, for cash withdrawals, banks may levy a flat fixed fee, but charging percentage-based fees on the withdrawn amount is strictly prohibited.
The central bank has placed strict restrictions on card usage and operational funding.
Islamic credit cards cannot be used to pay for goods and services prohibited under Islamic law, including alcohol, gambling, and tobacco.
Additionally, banks are forbidden from utilizing funds from Mudaraba deposits or investors' savings accounts to fund credit card operations.
To protect consumer interests, the central bank has made it mandatory for banks to notify cardholders at least 30 days in advance of any changes to card-related fees or charges.
