Turkish Central Bank cancels credit card cash advance decision

Turkish Central Bank cancels credit card cash advance decision
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Turkish Central Bank has canceled the limitations on cash advances from credit cards

The Central Bank of the Republic of Turkey (TCMB) has lifted the restrictions on cash advances from credit cards.

According to the instructions sent by the TCMB to banks, there are no issues with individual and corporate credit card usage.

With the new decision, the requirement of collateral for cash advances has been removed along with the implementation of macro-prudential measures on credit cards.

On Thursday, numerous banks in Turkey had suspended cash advances from credit cards.

Customers were able to borrow credit at an interest rate of 1.36% per month from their credit cards. Individuals in need of loans were relying on credit card cash advances due to higher interest rates on consumer loans.

While banks determine their own loan interest rates, the interest rate applied to credit cards is set by the Central Bank. This has resulted in banks not being able to profit from cash advances in recent times.