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Introduction of Credit Card Summary Box - Press Note issued by State Bank of Pakistan

February 20, 2014



February 20, 2014 (PPI-OT)

Following is the text of press note issued by State Bank of Pakistan (SBP)

Quote

In order to enhance the existing level of transparency and disclosure in the credit card business, it has been decided that banks shall invariably provide an upfront key product fact sheet in the form of a Summary Box to their prospective customers with effect from September 01, 2014.

A specimen of the Summary Box containing the minimum information relating to Annualized Percentage Rate (APR), effective interest rates, minimum monthly repayments, card limits, fees and charges, insurance coverage, etc. is being attached for meticulous compliance.

Banks may, however, add any further material information in the Summary Box as they deem necessary. Further, before issuing any credit card, the bank shall retain a duplicate copy of Summary Box duly signed by the customer and authorized banker, in line with SBP record retention regulations.

2. Failure to comply with the above directives shall attract penal action under the provisions of Banking Companies Ordinance, 1962.

For more information, contact:Syed WasimuddinChief SpokesmanState Bank of Pakistan (SBP)Tel: +9221 3921 2562Fax: +9221 3921 2563Email: syed.wasimuddin@sbp.org.pk

Unquote


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Source: Pakistan Official News


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