Bangladeshis cut back on credit card spending in India, shift focus to US, UK, S Arabia

Spending behaviour among Bangladeshi credit card users abroad is undergoing a significant transformation, with notable decreases in expenditure in India and a surge in transactions in countries such as the United States, the United Kingdom and Saudi Arabia.

According to the latest figures from Bangladesh Bank, the total overseas expenditure by Bangladeshi credit card holders fell to Tk361 crore in March 2025, a 6.25% drop from February's Tk385 crore.

The year-on-year comparison paints an even starker picture: in March 2024, the figure stood at Tk503 crore, Tk142 crore higher than the current year's amount.

Spending in India Plummets

Perhaps the most dramatic shift has occurred in India, historically one of the top destinations for Bangladeshi credit card usage. In March 2025, card transactions in India dropped to just Tk27.60 crore, a steep 72.26% fall from Tk106 crore in March 2024.

Analysts attribute this decline to a combination of factors, including stricter border controls, visa complications, and a growing preference for other international destinations. Diplomatic tensions are also cited as a key reason.

Since 5 August of last year, India has suspended issuing tourist visas to Bangladeshis following the fall of the Sheikh Hasina government. No timeline has been given for when tourist visas will resume.

Besides, India has placed restrictions on certain exports to Bangladesh and limited the transit of Bangladeshi goods through Indian territory.

These actions have severely impacted travel plans for Bangladeshis who frequently visited Indian cities such as Kolkata, Delhi, Darjeeling, Sikkim and Meghalaya.

Indian High Commissioner to Dhaka, Pranay Verma, said visas are currently being issued only for urgent needs due to staff shortages at the embassy.

Tourist visas would be reconsidered once normal operations resume. In the meantime, medical and third-country visa applications made in India are being prioritised, he added.

Rising Transactions in US, UK and Saudi Arabia

While India sees a decline, other countries are recording higher levels of spending. The United States now tops the list for Bangladeshi overseas credit card usage, with March expenditures reaching Tk57.40 crore, up from Tk52.30 crore in February.

The United Kingdom follows, with spending increasing from Tk30 crore in February to Tk36 crore in March.

Saudi Arabia, often associated with Hajj and other religious travel, comes in third with Tk35 crore in March, a notable rise from Tk24 crore in the previous month.

Bangladesh Bank officials suggest that this redistribution of spending reflects a broader trend. "Whether it's for business, personal needs, children's education, or medical treatment, Bangladeshis previously had a greater reliance on a specific country.

This dependence is now spreading across various countries worldwide. Consequently, credit card transactions have naturally increased in those other nations.

This is a very normal change," said Arif Hossain Khan, Executive Director and spokesperson for Bangladesh Bank.

Other Destinations Show Mixed Trends

Thailand, another favoured destination among Bangladeshis, has also seen a drop in card spending. Transactions there decreased sharply from Tk46 crore in February to Tk22 crore in March.

This trend indicates a shift in both travel preferences and spending behaviour, potentially driven by changes in visa policies, diplomatic relations, and personal or professional needs abroad.

Domestic Credit Card Usage on the Rise

In contrast to the dip in international usage, domestic credit card transactions have witnessed a significant rise.

In March 2025, domestic transactions stood at Tk3,755 crore, marking a 26.52% increase from February's Tk2,968 crore.

Bangladesh Bank's report identifies the top 11 sectors for domestic credit card use: departmental stores, service bill payments, retail purchases, cash withdrawals, clothing, pharmaceuticals, fund transfers, transportation, business and professional services, and government service payments.

Notably, spending decreased in all sectors in November except for cash withdrawals.

Regarding card types, Visa remains the most used, accounting for 73% of transactions, followed by Mastercard at 18%, and American Express (Amex) at 9%.

As global and domestic financial landscapes continue to shift, these new credit card usage patterns offer insights into how geopolitical dynamics and consumer behaviour are reshaping the spending habits of Bangladeshis both at home and abroad.