After the central bank cancels the upper and lower limit management of credit card overdraft interest rate, will the interest rate be greatly reduced? The People's Bank of China recently issued the Notice on Promoting the Market-oriented Reform of Credit Card Overdraft Interest Rate (hereinafter referred to as the Notice). In order to further promote the interest rate marketization reform, the credit card overdraft interest rate of 202 1 to 1 is determined by the card issuer and the cardholder through independent negotiation, and the upper and lower limits of the credit card overdraft interest rate are cancelled (that is, the upper limit is five thousandths of the daily interest rate and the lower limit is five thousandths of the daily interest rate).

In the notice, the central bank requires the card issuer to fully disclose the credit card overdraft interest rate through the institution official website and update it in time, and should clearly indicate the credit card overdraft interest rate and interest settlement method in the credit card agreement to ensure that the cardholder fully knows and confirms the acceptance. When disclosing the credit card overdraft interest rate, the annualized interest rate should be displayed in an obvious way, not just the daily interest rate and the daily repayment amount.

Reform after four years.

This is the second time that the central bank has reformed the credit card overdraft interest rate after four years. Before the last reform, the interest rate of credit card overdraft was always five ten thousandths of the daily interest rate.

Subsequently, the Notice on Matters Related to Credit Card Business was implemented from 20 17 1, and the credit card overdraft interest rate was subject to upper and lower limit management. The upper limit of overdraft interest rate is five ten thousandths of the daily interest rate and the lower limit is 0.7 times of the daily interest rate. The calculation method of credit card overdraft interest, whether to calculate and pay interest on credit card overpayment and its interest rate standard shall be determined by the card issuer independently. In other words, the issuing bank can make a 30% discount on the credit card overdraft interest rate standard with a daily interest rate of 0.035%, which will be reduced to 12.78% after annualization.

Will the overdraft interest rate drop sharply?

After four years, the central bank let go again. Will the bank cut the credit card overdraft interest rate?

It can be seen that although the central bank has long been loosened, the bank's credit card center is not willing to act.

At present, major card-issuing banks have no interest rate on credit cards. Discount? ,? 30% off Interest rates are even uglier. The basic implementation is the overdraft interest rate ceiling, that is, if the credit card bill is not repaid in full and on time, interest will be generated, and interest will be calculated from the date of entry, and compound interest will be calculated monthly. The interest rate benchmark is five ten thousandths of a day until the transaction is paid off.

This interest rate level is similar to similar products launched by the Internet financial platform, such as? Flowers? White stripes? Basically the same.

By the end of the third quarter of 2020, the number of credit cards and debit cards used in China totaled 766 million, an increase of 65,438+0.29% from the previous month.