The Central Bank of Oman has decided to cap interest rates on credit cards banks in the sultanate issue. The policy takes effect June 1 and applies to existing and new card accounts.
The annual interest rate for cardholders whose salaries are directly deposited into accounts with the same bank that issues their credit card will be capped at 18%, according to circular distributed by the central bank. The annual interest rate for other cardholders will be capped at 20%.
“Banks will have to strictly comply and operate competitively within the ceilings,” a central bank official tells PaymentsSource. “We hope that banks will be able to offer even lower interest rates considering the borrowers’ overall debt burden and serviceability.”
The central bank hopes cardholders approach credit cards as a payment convenience and not as a personal-loan facility, the official adds.
Credit card annual interest rates in Oman currently range from 24% to 36%.
