In addition the interest charged on late payments has also been increased.
The interest rate has been determined based on categorisation of credit cards. The interest charged on credit cards thus far is 28%. However from April 01st the interest on lower limit credit cards has been increased to 31.8%.
However, the interest on higher limit credit cards has been increased from 28% to 30%.
Prior to April 01st the charge for late payments was Rs. 990, but after April 01st the late payment charge has been increased to Rs. 1200.
The government informed recently that they had ordered the commercial banks and the Central bank to reduce the bank interest rates.
However, despite the order to reduce the interest rate, the commercial banks have taken steps to increase the in interest rates.
It is said that currently there are around 1,450,000 credit card users in the country.