Credit card’s interest not above 20pc
Published: 07:15 PM, 24 September 2020 Updated: 07:26 PM, 24 September 2020
Interest rates on credit cards cannot be set above 20 percent. Bangladesh Bank has sent a directive to the banks in this regard.
A circular in this regard has been issued by the Banking Regulation and Policy Department of Bangladesh Bank on Thursday saying the instruction will be implemented from October 1.
The circular further said that some commercial banks are offering different types of cash withdrawals under different names as opposed to credit cards, which is increasing the risk of bank loans. The self-interest of the customer is being harmed by charging unreasonably high interest on such loans at flat rate.
The circular further said that some banks are charging interest on the unpaid arrears of credit cards from the date of transaction and levying late fees at a progressive rate against the bills paid.
Meanwhile, Bangladesh Bank says interest rates or profit rates on credit cards cannot be set above 20 percent. In addition, interest will have to be charged on unpaid credit card bills from the day immediately following the last date for payment of credit card bills. In this case, interest cannot be levied in any way from the date of transaction.