Significant Shift in Bangladesh Credit Card Transactions: Decline in India, Rise in US, UK, and Saudi Arabia

Dhaka:Recent data from the **Bangladesh Bank** reveals a **notable shift** in the spending habits of **Bangladeshi credit card users** on foreign transactions. While transactions in **India** have sharply declined, spending has surged in countries like the **United States, United Kingdom**, and **Saudi Arabia**.

According to the latest figures for **March 2025**, total overseas transactions by Bangladeshi credit card holders amounted to **3.61 billion taka**, marking a **6.25% decrease** compared to **3.85 billion taka** in February 2025. The same period last year, **March 2024**, saw a much higher total of **5.03 billion taka**, which was **1.42 billion taka** more than this year.

### Sharp Decline in Transactions with India

One of the most striking trends is the dramatic **decline in transactions in India**. In March 2025, Bangladeshi credit card transactions in India amounted to only **276 million taka**, a **staggering 72.26% decrease** from **1.06 billion taka** in March 2024.

Experts suggest this decline can be attributed to several factors, including **strict border monitoring, visa complications**, and a growing preference for other countries. Additionally, increasing **diplomatic tensions** between the two nations have also played a significant role.

### Diplomatic Tensions and Visa Issues

In August 2024, India suspended the issuance of **tourist visas** for Bangladeshi citizens, which has led to a **decline in visa approvals** since then. Moreover, India has also imposed **restrictions on certain exports to Bangladesh** and limited the **transit of Bangladeshi goods**, further reducing opportunities for both travel and trade between the two countries.

In response to these developments, **Indian High Commissioner to Bangladesh, Pranay Verma**, stated that visas are currently being issued **only for emergency situations**, but anticipates that **regular visa issuance** will resume soon. Meanwhile, **medical and third-country visas** are being prioritized.

### Rise in Transactions in the US, UK, and Saudi Arabia

While India has seen a decline, transactions in countries like the **US**, **UK**, and **Saudi Arabia** are witnessing a steady **increase**. In **March 2025**, transactions in the **US** reached **574 million taka**, up from **523 million taka** in February. Similarly, in the **UK**, the figure rose from **300 million taka** to **360 million taka**, and in **Saudi Arabia**, it surged from **240 million taka** to **350 million taka**, reflecting the high volume of Bangladeshi travelers heading for **Hajj and Umrah**.

This shift in credit card usage reflects not only the changing **geopolitical dynamics** but also the evolving **preferences** of Bangladeshi consumers, who are now focusing on **countries with better visa access** and **economic opportunities**.

### Conclusion

As the trend of **declining transactions in India** and **rising transactions in other countries** continues, the **Bangladeshi economy** is likely to experience further changes in **foreign exchange dynamics** and **trade relationships**. This shift underscores the growing importance of **visa policies**, **border controls**, and **diplomatic relations** in shaping the financial behavior of consumers in a globalized economy.