Regulatory Alerts2024-12-01
Added
BRPD Circular Letter No. 52: Rationalization of Interest Rate on Credit Card
The document raises the maximum interest rate on credit cards from 20% to 25% to ensure sound loan risk management and alignment with banks' cost of funds. This new limit applies to scheduled banks in Bangladesh, which must set rates within this ceiling based on loan demand and available funds. Islamic banks are required to determine profit rates in accordance with these instructions. The directive becomes effective on January 1, 2025, while other instructions from Circular Letter No. 47/2020 remain unchanged.
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