On Dec. 1, BNG CB rationalized interest/profit rate on credit cards.
BNG CB raised maximum credit card interest to 25% from 20%, to ensure proper credit risk management and for alignment with increasing cost of funds for banks.
Banks may determine interest rates within this limit based on demand, funding costs.
Islamic Sharia-based banks must adjust profit rates in accordance with the directive.
Follows BNG CB Sep. 2020 issued guidelines on credit card operations, see #86933.
Effectiveness
The published directive will come into effect from Jan. 1, 2025.
