Interest Charged on Credit Cards too High. Central Bank Requests for a Reduction

12th December 2009, www.news.lk

The Central Bank has observed with concern that interest rates charged by licensed banks on credit cards have remained unchanged in the range of 33 per cent to 48 per cent since December 2008.

It is however noted that currently there is adequate leeway for the banks to reduce such interest rates on credit cards since the interest rates structure has moved down due to the relaxation of the monetary policy.

Accordingly, banks have been requested to reduce the interest rates levied on credit cards to at least a level between 24 per cent and 36 per cent.