[ad_1]
In a circular on Thursday, the Bangladesh Bank set the interest rate on credit cards and said the directive would take effect from October 1.
Credit cards are also becoming popular in Bangladesh, but there was discontent with their interest rates
The circular sent to the CEOs of all banks said that on August 3, 2016, Bangladesh Bank had issued a policy on credit cards. He said that the interest rate on credit cards will not be higher than 5 percent of the maximum interest rate of other loans of the bank in question and that this interest rate will apply only to unpaid arrears.
According to the policy guidelines, cash withdrawals can be made up to a maximum of 50 percent of the credit card limit up front and no unsecured loan or other loan against the card can be made to the customer. of credit.
“But recently it has been noticed that some banks are violating the guidelines by offering different types of cash withdrawals under different names instead of credit cards; Which is increasing the bank’s loan risk and charging an excessively high interest rate at a fixed rate on such loans; What is hurting the customer’s interest. “
The central bank also said that some banks have been charging interest on unpaid credit card bills since the transaction date and charging late fees at a “progressive rate” against unpaid bills.
According to the circular, a number of decisions have been made to rationalize interest / benefits with the credit facility instead of the credit card limit and to protect the interests of customers.
>> No more than 20 percent interest can be set on credit card interest / earnings.
>> Interest / earnings can be charged on the invoice from the day after the last date set for the payment of the credit card invoice. In this case, no interest can be charged from the date of the transaction in any way.
>> Under existing policy, a 50 percent cash-out loan facility cannot be granted by credit card in any other name.
>> Against any late paid invoices, only a late fee can be charged (whatever the other name is called).
Also, other conditions of the previous policy will remain unchanged, said the Bank of Bangladesh.
[ad_2]
