Interest rates on credit cards cannot be set above 20 pc: BB
News Desk || risingbd.com
Bangladesh Bank (BB) has directed all the commercial banks that Interest rates on credit cards cannot be set above 20 percent. The direction will be effective from October 1.
The central bank issued a circular in this regard on Thursday (September 24).
Some commercial banks are providing various kinds of loan facilities against bank credit cards which increases bank loan risk. The banks also impose higher interest in flat rate illogically ignoring the clients’ rights.
According to the Bangladesh Bank’s policy, up to 50 percent of the credit card limit can be withdrawn in cash by a customer. But, no unsolicited loans or other facilities can be offered against the credit card.