Iran gets its first credit card!
Q. Central Bank of Iran became the first bank to do what in the Islamic nation’s history?- Published on 28 Sep 16a. Introduce a credit card
b. Charge interest
c. Introduce loan systems
d. None of the above
ANSWER: Introduce a credit card
The Central Bank of Iran is allowing local financial institutions to issue credit cards for the first time in the Islamic Republic.
- The full introduction of the cards could take some time as local banks will need to get used to the credit card system, according to the head of Iran’s central bank Valiollah Seif.
- The step aims at improving public spending
- Number of credit cards issued will depend on applications received
- The cards will be offered with three set credit limits topping off at $15,000.
- Cards will be able to be used for purchasing goods and services over the counter and online.
- Accounts unpaid within a month will be subject to an 18 percent annual interest rate charge.
- Before this, only debt and prepaid cards were available
- According to Turkish payments processor Iyzico, the country has 231 million active cards operating through the Shetab debit card system.
- I ran’s financial institutions are trying to adjust after decades of sanctions against the country were lifted at the beginning of the year.
