Bangladeshis Slash Credit Card Spending in India, Pivot to US, UK, Saudi Arabia

Bangladeshi credit card spending abroad is shifting dramatically, with a sharp decline in India and increased transactions in the United States, the United Kingdom, and Saudi Arabia. According to Bangladesh Bank, overseas credit card expenditure dropped to Tk361 crore in March 2025, down 6.25% from Tk385 crore in February and 28% lower than Tk503 crore in March 2024.

India’s Decline

India, once a top destination for Bangladeshi credit card users, saw transactions plummet 72.26% to Tk27.60 crore in March 2025 from Tk106 crore in March 2024. This drop is attributed to stricter border controls, visa restrictions, and diplomatic tensions following the fall of the Sheikh Hasina government on 5 August 2024. India has since halted tourist visas for Bangladeshis, with no resumption timeline. Indian High Commissioner Pranay Verma cited staff shortages, prioritizing medical and third-country visas. Restrictions on Bangladeshi exports and transit through India have further curtailed travel to cities like Kolkata and Delhi.

Surge in Other Countries

The US leads overseas spending at Tk57.40 crore in March 2025, up from Tk52.30 crore in February, driven by education and medical needs. The UK follows with Tk36 crore, up from Tk30 crore, while Saudi Arabia, linked to religious travel like the Hajj, hit Tk35 crore, up from Tk24 crore. However, Saudi Arabia’s temporary suspension of Umrah, business, and family visit visas for 14 countries, including Bangladesh, until mid-June 2025 may impact future trends.

Other Destinations and Domestic Trends

Thailand saw a sharp decline, with spending falling from Tk46 crore in February to Tk22 crore in March, reflecting visa policy shifts and changing preferences. Meanwhile, domestic credit card use soared 26.52% to Tk3,755 crore in March 2025 from Tk2,968 crore in February, led by sectors like retail, bill payments, and cash withdrawals. Visa dominates with 73% of transactions, followed by Mastercard (18%) and American Express (9%).

Arif Hossain Khan, Bangladesh Bank’s Executive Director, called this a “normal change,” noting reduced reliance on India as Bangladeshis diversify spending for business, education, and medical needs globally. Visa restrictions and geopolitical shifts, including India’s export curbs and Bangladesh’s push for balanced ties, are reshaping consumer behavior.