Bank Negara raises minimum income requirement for new credit card holders
Written by Yantoultra Ngui Yichen of theedgemalaysia.com
Friday, 18 March 2011 11:20
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KUALA LUMPUR: Bank Negara Malaysia raised the minimum income requirement to RM24,000 per annum from RM18,000 a year, effective immediately for new card holders.
The central bank said on Friday, March 18 the move to raise the income requirement was part of its new credit card guidelines as it sought to promote and inculcate sound financial and debt management.
Apart from higher minimum income ruling, Bank Negara also limited the maximum credit limit of card holders earning RM36000 a year or less to two times their monthly income of card holder per issuer.
All point of sale card transactions will require PIN verification by Jan 1, 2015.
BNM's deputy governor Nor Shamsiah Mohd Yunus said: "These new guidelines are to promote public confidence in the usage of credit card as a viable and safe payment.”
“In addition, it will ensure fair business practices as well as greater transparency and disclosure."
Nor Shamsiah said credit card debt in Malaysia currently remained at a manageable level. As at end 2010, outstanding credit card debt totalled RM30.8 billion or 5% of total household debt.
"Although credit card usage continued to increase, non-performing loan ratio remains low.
"As at end 2010, credit card non-performing loans were only 1.7% of total credit card loans and 2% of the total banking system’s non-performing loans," she said.