Regulatory Alerts2022-03-14
Instructions Concerning Credit Cards Issued by Local Banks
The Central Bank of Kuwait issued comprehensive instructions requiring local banks to strictly regulate credit card issuance, maximum limits, and repayment periods for debit balances. These directives mandate that repayment terms not exceed one year, cap total installment obligations at 50 percent of monthly income, enforce EMV technology for smart card transitions, and require guardian guarantees for minor cardholders. Banks must submit regular monthly and quarterly data on card balances, transaction volumes, and customer inquiries while ensuring full compliance with all prescribed limits.
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