27 banks told to explain breach of ceiling in credit card dollar spending

As many as 27 banks allowed the holders of 71 credit cards to spend more dollars than the ceiling fixed by the law

Bangladesh Bank has instructed 27 banks to explain why their credit card holders have been able to spend more dollars abroad than the limit.

Central bank spokesman Md Serajul Islam said on Sunday a recent special inspection found 71 credit cards were used to spend more than the foreign currency limit.

The banks have five days to explain.

The Foreign Exchange Regulation Act stipulates that a citizen can spend foreign currencies worth a maximum of $12,000 a year. They may spend $500 more in special cases.

Bankers said banks fix the ceiling of foreign currency use via credit card, but the 27 banks did not follow the rule for the 71 customers.

Central bank officials said the inspection found up to $20,000 was spent through a card. It could not be confirmed how much was spent in total.

Bangladesh Bank had previously fined National Bank Tk 5.5 million for allowing its customers to spend more dollars than the limit against 11 credit cards.