Overseas credit card transactions by Bangladeshi nationals in April this year were dominated by India, accounting for 19.31 per cent or Tk 979 million, according to Bangladesh Bank data.
This trend, persistent over the past 14 months, reflects a high volume of Bangladeshi travel to India each month for various reasons such as medical treatment, business trips and tourism.
In contrast, Bangladesh Bank data analysis over the past 14 months shows that Indian nationals rank third in credit card usage among foreign visitors in Bangladesh.
In April, Indian travellers spent Tk 170 million, which is 8.56 per cent of total credit card transactions by foreign nationals in Bangladesh.
Bangladeshi credit card spending in India was 82.63 per cent higher than Indian spending in Bangladesh during April 2024.
Transaction volume mirrored this disparity too, as Bangladeshis made 119,786 credit card transactions compared to 21,150 by Indian nationals during the month.
An estimated 2.0 million Bangladeshis visit India annually for various purposes, including tourism, medical treatment, business ventures, education and family visits.
Tour Operators Association of Bangladesh (TOAB) Director (Accounts) Md Saiful Islam said at least 60 per cent of Bangladeshi travellers to India seek medical treatment there.
"Many people prefer Indian medical treatment, as they are better than that available in Bangladesh," he told The Financial Express.
"Bangladeshi patients spend between Tk 100,000 to Tk 300,000 each in Indian hospitals," Mr Islam said. "For severe conditions like cancer, heart disease and kidney ailments, these costs can go up to Tk 500,000 to Tk 1.0 million."
"These patients typically use credit or dual-currency prepaid cards to pay for their treatments," he added.
Business travel accounts for the second-highest number of visits, followed by tourism, Said Mr Islam, also the owner of A-One Tourism.
Besides, many Bangladeshis visit India for consular services -- particularly visa applications -- from European nations as those are not available in Dhaka.
Bangladesh Bank data shows a consistent trend of Bangladeshis leading credit card spending in India.
They made the highest share of transactions in the past three months: 21.06 per cent or Tk 1.0 billion in March, 21.72 per cent or Tk 1.0 billion in February and 18.14 per cent or Tk 965 million in January.
In April 2023, India received 20.01 per cent or Tk 737 million of Bangladeshi cross-border transactions.
Bangladeshis spent over Tk 5.0 billion on credit cards overseas in April this year. In contrast, credit card transactions by foreign nationals within the country amounted to only Tk 1.99 billion in April, the central bank statistics show.
Bangladeshi nationals in April made credit card transactions of 13.12 per cent or Tk 665 million in the USA, followed by 9.19 per cent in Thailand, 7.96 per cent in the UAE, 7.29 per cent in Saudi Arabia, 7.03 per cent in Singapore, 6.27 per cent in the UK, 4.91 per cent in Canada, 4.04 per cent in Malaysia, 2.54 per cent in Netherlands, 2.53 per cent in Australia, 2.32 per cent in Ireland, and 13.48 per cent in other countries.
Of the Tk 1.99 billion transactions by foreign nationals in April, the majority originated from US-issued cards -- amounting to 26.27 per cent or Tk 523 million of the total.
Other significant contributions were made by UK nationals, 10.69 per cent or Tk 213 million, Canada 4.14 per cent or Tk 82 million, Singapore 3.88 per cent or Tk 77 million.
Dr M Masrur Reaz, chairman of the Policy Exchange of Bangladesh, said India is the top destination for Bangladeshi tourists. The spending is higher in India due to the nature of travel, which includes medical tourism, shopping and general sightseeing.
On the contrary, Indian visitors to Bangladesh primarily come for business or official purposes, resulting in lower spending.
"Indian tourists do not come for medical treatment in our country, as they already get superior treatment facilities there."
Therefore, Dr Reaz suggested developing Bangladesh's tourism sector and creating new retail offerings, which he believes could attract more Indian tourists for leisure and shopping.
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