Banking News – The Nepal Rastra Bank (NRB) has urged consumers to fully understand the terms and conditions of credit cards before using them, emphasizing the importance of responsible borrowing and financial discipline.

In a public notice issued by its Financial Inclusion and Consumer Protection Department, the central bank advised users to carefully review all conditions associated with credit card services before making transactions.

According to the NRB, credit cards are electronic payment instruments issued by commercial banks, national-level development banks, and finance companies. Cardholders generally do not incur interest charges if they repay the outstanding balance within the specified payment period.

However, the central bank warned that failure to make payments by the due date may result in high interest charges, urging consumers to develop the habit of repaying credit card bills on time.

The NRB also advised customers to understand key aspects of their credit card agreement, including purchase and cash withdrawal limits, payment deadlines, penalty interest rates, annual renewal fees, transaction statements, payment methods, billing cycles, complaint procedures, and other applicable terms and conditions.

“Disciplined use of credit cards offers convenience, but careless usage can lead to excessive debt risks,” the central bank said, encouraging consumers to become responsible and informed credit card users to ensure safe and secure use of the facility.