JAKARTA. Credit card transaction will be more convenient, since Bank Indonesia (the Central Bank) plans to cut capping of credit card transaction’s interest rate. In the future, BI will set the maximum of credit card interest at maximum rate of 2.25% per month or 26.95% per year. To date, the capping of credit card transaction’s interest rate stands at 2.95% per month or 35.4% per year. In other words, BI will decrease the capping of credit card interest rate by 70 basis points (bps) per month. Deputy Governor of BI said that BI’s Board of Directors has agreed the plan. It is expected that the policy will increase the amount of non-cash payment.
BI will cut credit card interest rate
JAKARTA. Credit card transaction will be more convenient, since Bank Indonesia (the Central Bank) plans to cut capping of credit card transaction’s interest rate. In the future, BI will set the maximum of credit card interest at maximum rate of 2.25% per month or 26.95% per year. To date, the capping of credit card transaction’s interest rate stands at 2.95% per month or 35.4% per year. In other words, BI will decrease the capping of credit card interest rate by 70 basis points (bps) per month. Deputy Governor of BI said that BI’s Board of Directors has agreed the plan. It is expected that the policy will increase the amount of non-cash payment.