NIC Bank to limit credit cards issuance after cap on interest

NIC Bank will issue fewer credit cards and may demand collateral in some cases because of a Government decision to cap what banks can charge for loans, its chief executive said.PHOTO: COURTESY

NIC Bank will issue fewer credit cards and may demand collateral in some cases because of a Government decision to cap what banks can charge for loans, its chief executive said.

The Government capped commercial lending rates at 400 basis points above the Central Bank’s benchmark rate (CBR), now at 10 per cent, last month, seeking to rein in banks, which it said were making increased profits at the expense of clients.