As part of its continuous measures to stimulate the credit growth and at the same time to ensure that the charges imposed to the credit card cardholders are reasonable, Bank Negara Malaysia today announces that with immediate effect, the banking institutions that issue credit cards are required to observe the following guidelines on charges relating to credit card:-

1. The maximum finance charges charged to the cardholders should not be more than 1.5% per month or 18% per annum; and

2. The late payment charges should not be more than 1% of the amount in default. However banking institutions are allowed to charge a minimum penalty of RM5.