Amendments to the Ceiling on Interest or Finance Charges for Credit Card Receivables

,i I BANGKO SENTRAL NG PILIPINAS OFFICE OF THE COVERNOR CIRCULAR NO. II65 Series of 2023 Subject: Amendments to the Ceiling on Interest or Finance Charges for Credit Card Receivables The Monetary Board (MB), in its Resolution No. 55 dated 13 January 2023, approved the following amendments to the Manual of Regulations for Banks (MORB)and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI)on the ceiling on interest or finance charges for credit card receivables. Section L Section 312 of the MORB is hereby amended to read, as follows: 312 CREDIT CARD OPERATIONS XXX Method of computing and imposition of interest or finance charges. Banks shall impose an interest or finance charge on all credit card transactions not to exceed an annual interest rate of thirty-six (360/o) except credit card installment loans which shaf l be subject to monthly add-on rate not exceeding one (l ) percent: Provided,That in the case of credit card cash advances, aside from the foregoing applicable maximum interest rate caps, no other charge or fee shall be imposed or collected apart from the processing fee in the maximum amount of Php2OO.OO per transaction; Such maximum processing fee and interest rates or finance charges shall be subject to review by Bangko Sentral every six (6)months. XXX Section 2. Section l01-CC of the MORNBFI is hereby amended to read, as follows: l0l-CC CREDIT CARD OPERATIONS; GENERAL POLICY XXX Method of computing and imposition of interest or frnance changes. Credit card issuers shall impose an interest or finance charge on all credit card transactions not to exceed an annual interest rate of thirty-six (360/o) except credit card installment loans which shall be subject to monthly add-on rate not exceeding one ('l)percent: Provided, That in the case of credit card cash advances, aside from the foregoing applicable maximum interest rate caps, no other charge or fee shall be imposed or collected apart from the processing fee in the maximum amount of Php2OO.OO per transaction; Such maximum processing fee and interest rates or finance charges shall be subject to review by Bangko Sentral every six (6) months. xxx Section 3. This Circular shall take effect 15 days following its publication either in the Official Gazette or in any newspaper of general circulation in the Philippines. FOR THE MONETARY BOARD: E, - Lo<t- a* FELIPE M. MEDALLA Governor fl January 2023