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BB limits credit card interest rate at 20pc

Published : 24 Sep 2020 09:29 PM | Updated : 25 Sep 2020 10:23 AM

Bangladesh Bank (BB) has set a ceiling of 20 percent interest on credit card bills to protect the interests of customers, reports BSS.

The rate will be effective from Oct 1, as per a BB circular issued Thursday.

Referring to its policy guidelines on credit cards dated Aug 3, 2017, BB said the interest rate on credit cards must not go 5 percent above the highest interest charged on other loans offered by a bank. The interest rate will only be levied on any outstanding amount.

According to the central bank’s policy, up to 50 percent of the credit card limit can be withdrawn in cash by a customer.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 based on the credit card.