48227
No Restrictions on Credit Card Uses
Economy, Business And Markets

No Restrictions on Credit Card Uses

There is no restriction on using credit cards that are going to be issued by domestic banks and cardholders can even purchase imported goods, said CBI’s deputy for supervisory affairs.
“Putting restrictions on purchasable goods would be an inconvenience to cardholders. It would result in the schemes’ failure, like what happened to a similar credit card scheme last year” Farshad Heydari was also quoted as saying by Bankemardom.ir on Sunday.
Earlier this week, the CBI announced that the banking system will start issuing credit cards to gradually meet the customers’ needs for small loans and help pull “the real economic sectors” out of the prolonged recession.
Three kinds of credit cards will be offered: Golden, with a credit of 500 million rials ($14,000 at market exchange rate), Silver, with a credit of 300 million rials ($8,400), and Bronze, with a credit of 100 million rials ($2,800), based on the applicants’ creditworthiness measured by banks.
Last year, CBI Governor Valiollah Seif unveiled an incentive package aimed at financing manufacturers and providing credit services to consumers.
Credit cards up to 100 million rials were to be issued to help consumers purchase domestic durable goods, while cardholders would be charged 12% for the transactions.
However, the plan failed, due to restrictions on purchasable goods and eligible applicants.
“The plan is developed based on the assumption that goods are either produced inside the country or imported through legal channels,” said the central banker.
 “A considerable portion of goods are imported through legal channels so it is fine to purchase these goods, since importers have paid all the fees and duties,” he said.

 Healthy Competition
By offering credit cards, the CBI is also seeking to promote the quality of banking services in the country.
“Applicants’ creditworthiness is measured on the basis of the banks’ criterion,” he said, “Contract terms are open for negotiation by banks and applicants.”
Heydari said lenders offering better services to the customers would be more successful.
Iranian banks currently issue credit cards, debit cards and gift cards, though the first type is not commonly used, as it is limited to VIP customers.
According to Shaparak’s data, banks issued 330 million cards in the last Iranian year (ended March 19, 2016), 1.6 million of which were credit cards. The numbers indicate that even those who managed to get credit cards did not use it, since only 2.64% of credit card transactions were recorded.

Short URL : http://goo.gl/ZMzAbm
  1. http://goo.gl/7LXLV6
  • http://goo.gl/oUhaOr
  • http://goo.gl/AJpTW8
  • http://goo.gl/xSccaA
  • http://goo.gl/irNDQ9

You can also read ...

VDMA Backs Iran Trade
Germany’s plastics and rubber machinery trade association,...
New Forex Initiative Unable to Tip Scales
The new forex initiative has only managed to fix major policy...
Central Bank of Iran Against Market Intervention
Central Bank of Iran's Governor Abdolnasser Hemmati said the...
Equity-Based Sukuk Return to Iran Capital Market
The government is set to clear part of its debt to Social...
Musk Bid for Tesla Still Murky
Tesla Inc’s board named a special committee of three directors...
Tehran Shows 4th Biggest Upturn in Economist’s Livability Index
Tehran is one of the top five cities in the world to have...
Over €81m Worth of Airport Equipment Purchased  Post JCPOA
Iran Airports & Air Navigation Company, an arm of the...
S. Korea Bans Recalled BMWs Over Fire Fears
The South Korean government has said it will ban about 20,000...

Trending

Googleplus