It issued a circular in this regard on Sunday, asking banks to follow the new directive to fix interest rates. The new directive will take effect on January 1 next year, according to the circular.
Banks would also determine the interest rate within this limit based on their loan demand and funding availability, it added.
The central bank further stated that Islamic Shariah-based banks would adjust their profit rates on investments in line with this guideline, while all other instructions would remain unchanged.
The directive was issued under the power conferred by sections 29(2)(cha) and 45 of the Bank Company Act 1991.
Sources say City Bank, BRAC Bank, Eastern Bank, and Standard Chartered Bank lead the credit card market.
Banks recently urged the central bank to increase the interest rate cap on credit cards, resulting in Sunday's directive.
Credit card transactions in all categories showed a decline in August this year, as there was a downward trend in economic activities across the country.
The central bank data shows domestic transactions witnessed a slight decrease of 0.45 per cent in August, amounting to Tk 23.32 billion compared to Tk 23.42 billion in the previous month.
Besides, international transactions totalled Tk 3.72 billion in August, showing a fall of 21.52 per cent from Tk 4.75 billion in July.
Similarly, transactions made with credit cards issued by foreign entities but used within Bangladesh declined to Tk 1.11 billion in August from Tk 1.36 billion in July, indicating a decrease of 18.07 per cent.
Data shows a significant majority (72.11 per cent) of credit card transactions took place using Visa, while 17.76 per cent was done with Mastercard and 9.98 per cent with American Express.
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