THE Bangko Sentral ng Pilipinas (BSP) has maintained the 2 percent per month ceiling on the interest rate on unpaid credit card balance.
In a virtual briefing on Thursday, BSP Governor Benjamin Diokno said the central bank’s policy-making Monetary Board decided to retain the maximum interest rate or finance charge of 24 percent per annum or 2 percent per month on a cardholder’s unpaid outstanding credit card balance.
The monthly add-on rates that credit card issuers can charge on installment loans also stays at a maximum of 1 percent.
Meanwhile, the maximum processing fee on the availment of credit card cash advances was also kept at P200 per transaction.
““The decision is based on a holistic assessment of developments in the macroeconomy, the state of credit card financing as well as the safety and soundness of banks and other credit card issuers. It will also continue to help ease the financial burden of consumers through affordable credit card pricing,” Diokno noted.