Dhaka: Atleast 25 to 30 shops, including a police box, were torched during the clash.
Border Guard Bangladesh (BGB) have been deployed, exams and university classes have also been postponed on Sunday and Monday.
The clash ensued when a student of the university entered into an altercation with a bus staff at about 6 p.m. over seating arrangement in a bus.
Witnesses said that Akash, a student of the Social Work department, came to Rajshahi in a bus from Bogura on Saturday evening.
He entered into an altercation with the driver and supervisor of the bus over sitting in the bus.
Later, assistant of the bus and Akash entered into an altercation again in the Binodpur Gate area of the university.
A local trader also joined in the altercation at that time.
On being informed, students from various halls of the university rushed to the spot and engaged in clashes with the bus staff and locals.
Witnesses said the students and traders then began hurling brick chips at each other at that time.
The students vandalised several shops and set them on fire while the traders damaged several motorcycles of the students.
RU proctor professor Ashabul Haque said they were trying to bring the situation under control.
–IANS