The bomb-disposal unit of Counter Terrorism and Transnational Crime of Police found a grenade in the capital's Gulistan intersection on Saturday night.
Earlier on the night, Police cordoned off the after reportedly seeing a bomb-like object there.
"On information, the bomb-disposal unit rushed to the spot and neutralised the grenade," Jahidul Islam Shohag, assistant commissioner (Motijheel zone) told The Business Standard.
The grenade was found inside a bag that was on the motorcycle of a traffic sergeant. The sergeant said that he went away from his bike for a few minutes and saw the bag after returning.