Kathmandu. Nepal Rastra Bank (NRB) has advised people to use credit cards only after understanding the conditions.
The central bank issued a notice for financial awareness today. A credit card is an electronic payment instrument issued by a bank or financial institution licensed by Nepal Rastra Bank. It can also be used to pay for goods and services and withdraw cash up to a specified limit.
According to the NRB, it is a convenient and secure payment tool if used correctly. “However, negligence can lead to high interest rates and financial burden,” the NRB said.
There is no interest and additional charges when paying the credit card bill within the stipulated time. However, the central bank has warned that if the payment is not made within the stipulated time, it may incur higher interest and damages.
Before using a credit card, the following should be continued
- Credit Limit,
- Fees and Interest Rates,
- Bill Preparation Date & Payment Deadline,
- Additional fees and interest for failure to pay on time.
