CB goes public with deposit rate caps on finance companies

2 April 2014 04:34 am - 1     - {{hitsCtrl.values.hits}}

A A A

The Central Bank yesterday informed the public of maximum interest rates that could be offered for deposits by finance companies, with effect from April 1, 2014.

This was the first time Central Bank notified the public of the maximum interest rates on deposits as the earlier practice had been to inform the top management of the finance companies mostly on a quarterly basis.

The Central Bank said the maximum interest rate that could be offered for savings deposits accepted or maintained shall be 7.58 per annum.

The maximum interest rate that could be offered for fixed deposits accepted or renewed for a maturity period of one year or less should be 11.01 percent per annum.

If the maturity period is over one year and up to three years, the maximum interest rate should be 12.01 percent per annum and if the maturity period if over three years, the maximum interest rate should be 13.51 percent per annum.

Finance companies are allowed to pay an additional interest rate of one percent above the maximum rate, in the case of savings or fixed deposits by senior citizens over 55 years.

According to analysts, this is a step in the right direction by the Central Bank though it is long overdue to make the public aware of the official interest rates that could be paid by finance companies within the legal framework they are operating in.

Thousands of Sri Lankans have been duped by finance companies—some licensed by the Central Bank—offering interest rates way higher than the rates the Central Bank had fixed.

“I believe this is very good move by the Central Bank, if they continue go public with the rates every three months or so. Then the people could guess if somebody is offering interest rates higher than the official rates, there’s something fishy going on with that company,” a finance sector analyst said.
See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

  Comments - 1

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

 
  • DillonDP Friday, 13 June 2014 10:02 AM

    This is what is called transparency and a right move


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Credentials of official raise controversy

Amila Ishan Kankanamge, the Government appointed non-Executive Director to Mo

How the SLAF killed the LTTE’s “Smiling Cobra” in an air strike

More than eleven years have passed since the war between the Sri Lankan Armed

Sri Lanka in CT Level 3, health experts

As Sri Lanka witnessed the highest number of deaths in a single day and with

How Covid-19 is further marginalising the vulnerable

Although the COVID-19 pandemic was initially described by many as a “great

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.