Iran Banks Scrap Overnight Interest Rates

A new decision approved by the Money and Credit Council obliges Iranian banks and credit institutions to pay interest on deposits on a monthly basis, calculating the minimum balance in a month as the basis.
The Central Bank of Iran sent a directive to banks and credit institutions outlining the details of the decision. It stipulates that the decision will come into force on Jan. 21 and asks lenders to notify customers. 
The new rule notes that interest rates per se remain unchanged but only the mechanism has changed from overnight to monthly basis.  It refers to previous bylaws according to which the maximum interest rate for short-term ordinary deposits was 10% and the same will be paid monthly come Jan. 21.