Bank Indonesia extends relaxed credit card rules until June 2022

Wednesday 27 October 2021 11:11 CET | News

Bank Indonesia has prolonged its credit card rules set in May 2020 to further support economic recovery due to the pandemic.

Bank Indonesia (BI) has extended its relaxed repayment terms for credit card debt to the end of the second quarter next year to support economic recovery efforts. Under the relaxed rules, minimum payment has been cut from 10% to 5% of the outstanding credit balance. Meanwhile, the penalty for late payment has been reduced from 3% of the outstanding balance capped at USD 11 to 1% with a USD 7 cap.

The relaxed credit card debt terms were originally slated to end in December 2021 for the reduced minimum payment and June 2021 for the reduced penalty. Introduced in May 2020 and extended for the first time later that year, the rule is in line with the central bank’s eased monetary and loan provisioning policies, aimed to increase the disbursement of bank loans.

More: Link

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: banks, credit card, regulation, central bank
Categories: Banking & Fintech
Countries: Indonesia
This article is part of category

Banking & Fintech