Ref No: 03/11/06

Embargo: Not for publication or broadcast before 2011-03-18 12:00:00 hours on , 2011-03-18 12:00:00 2011-03-18 12:00:00

New Measures on Credit Cards to Promote Prudent Financial Management and Responsible Business Practices

Bank Negara Malaysia wishes to announce new measures on credit cards in continuous efforts to inculcate sound financial and debt management among credit card users. These measures are also aimed to promote fair and responsible business practices by credit card issuers with further enhancements in the cards security infrastructure.

With immediate effect, the eligibility requirements for credit cards are revised as follows:

The minimum income eligibility for new credit card holders is set at RM24,000 per annum;
For cardholders earning RM36,000 per annum and less, the following would be applicable:
Cardholders can only hold credit cards from a maximum of two issuers.

The maximum credit limit extended to a cardholder shall not exceed two times their monthly income per issuer.

Card issuers will engage with the affected cardholders to assist them in restructuring their repayments to facilitate the smooth implementation of this measure. In addition, cardholders can also seek the assistance of Agensi Kaunseling dan Pengurusan Kredit (AKPK) for advice on their debt management.

Responsible Business Practices in Provision of Credit Cards

Credit card issuers are required to adopt fair, transparent and responsible approach in marketing and offering of credit cards to consumers. Issuers are not allowed to increase cardholders' credit limit without obtaining their consent. Issuers are also not allowed to offer a credit advance in the form of cheque payable to the cardholders unless the cardholders have requested for the credit advance.

To facilitate consumers in making comparison and informed decisions, card issuers are required to provide a Product Disclosure Sheet that contains key information on the card's features, fees and obligations of the cardholders. Issuers are also required to display prominently alerts to communicate to cardholders the implications of meeting only minimum and partial repayments. At the end of each year, customised information on how long it will take to fully pay off the cardholder's outstanding balance and the total interest costs if the cardholder only makes minimum repayment will be issued to each cardholder. This will be effective for annual statements issued from December 2011.

Further Enhancements to Credit Card Infrastructure Security

In the effort to further enhance credit card security and to promote public confidence in the usage of credit cards as a safe payment instrument, effective 1 January 2012, transaction alerts via Short Messaging Service (SMS) will be implemented by card issuers for their cardholders after transactions are performed. This will be followed by the implementation of the Personal Identification Number (PIN) verification for all card transactions from 1 January 2015 onwards.

For further information on the new credit card guidelines, members of the public can contact ABM Connect at 1-300-88-9980, the contact centres of their respective card issuers and Bank Negara Malaysia's Telelink at 1-300-88-5465.


Bank Negara Malaysia
2011-03-18 12:00:00 2011-03-18 12:00:00

© Bank Negara Malaysia, 2011. All rights reserved.
http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2226
Conclusion, which 2 credit card should you stay with if income RM36,000 per annum or less?

How to know the existing cardholder income?

I am following the news closely. I'm at risk of losing my Citibank VISA and Maybankard 2 now 

The problem is i don't have any money in Citibank and Maybank. I got their credit cards using my HSBC credit card as reference    Hopefully they will automatically put me in the above RM36k income group. Then i got nothing to worry anymore 

Latest update is that Bank need to prove that the customer makes more than 36k per annum when BNM come to audit, if your current salary are below 36k they have to lower it and if not mistaken will be coming months.

Cimb already announce the New Measures on Credit Cards Q&A
http://www.cimbbank.com.my/index.php?rp=ne...d&tpt=cimb_bank

so now i have quit my business and am not working too....
how? cant hold the blardy cards even if i am a good paymaster and have never paid late or any interest,,,?

looks like have to switch vote next elections

Based on feedback from my sources in BNM, the income is based on Form J/JA as issued by the IRB 

Simple, anybody who does not submit or pay Income Tax will be considered earning less than RM36K

Update by maybank
http://www.maybank2u.com.my/WebBank/FAQ_BNM030411.pdf

no offense but shell card is a rubbish card. if that person use other banks cc to apply new credit card, they wont know his or her income

Insider tips - ABM is trying to come up with a method to justify a person's income via proxy based on the customer's cards, housing loan or hire purchase then propose to BNM as a justification for a said customer's income.

And you quoted me because ??    What you replied is irrelevant to my post.

You wouldn't be affected because your income more than that already
The banks are desperate trying to retain their market shares, who knows; they might adopt that. haha provided BNM agrees to their proposal.

It's funny when CIMB and Maybank declared that only 8% of their card base is less RM36k and less. Hard to believe though.

Hahaha ... it is rather hilarious when those newbies advise what the seniors in here already know.
Not understanding that in this part of LYN, the senior folks here know the subject well (unlike in other threads) .... like a technical cc specialist. We even have an expert blogger on the subject!

right after pumping petrol using cc, then u received an sms..dangerous? 

Read this article and would like to ask...
http://creditcardsmalaysia.blogspot.com/20...harges-sms.html

You know how airlines always asks us to switch off HP? If fraudulent charges happened during the several hours we are on the airplane, who is going to bear the costs?

my salary now is below 36k...

my CC now is Maybankard 2 Card, CIMB Petronas and also CIMB Visa Signature (supplementary).....is is ok??or need to cancel 1 card??

Heard on the radio this is per BNM's directive for wage earners below RM36k per annum.They really do act fast don't they.

what will happen to those who earn less than RM36k annually but still have more than 2 cards after 1 jan 2012?

I had an interesting conversation with BNM via the telelink phone number.

Basically my wife tried to ask Public Bank to lower the SMS Alert to RM30 from the default of RM500.

Public Bank refused to do so and when my wife mentioned BNM Policy, they said the lowest that Public Bank is willing to go is to RM100 and that BNM said that consumers can choose to receive SMS Alert for all trnasactions is for 'Online Transactions' and not Credit Card Transactions.

So, I got angry and called BNM via the Telelink and spoke to the BNM Officer (but I forgot her name).

I told the BNM Officer my story and her reply was:

1. BNM says that consumers are to receive a SMS Alert for all Transactions above the default amount

2. BNM did not set the default amount although it is understood that most Banks have set it at RM500

3. Consumers are free to choose their own default levels subject to 'mutual agreement' with their Banks.

4. Where the consumer and the Bank cannot agree on the lower amount, the consumer can insist to lower the amount subject to the consumer agreeing to pay the charges for the SMS Alert as this is considered as an additional service.

I did mention to the BNM Officer that the default amount of RM500 is too high as culprits in places such as Restaurants, Pubs can just swipe 2x of RM200 and the consumer will not know until the Statement arrives and will be in a difficult position to dispute such transactions.

But BNM Officer says to 'negotiate with the individual Bank concerned.

Should I send an official e-mail to BNM to confirm this?

Calling also other sifus Gen-X boon ronnie to give expert comments

For the record, I have managed to get my other CC like AEON, Alliance and OCBC to lower the threshold to say RM30. But Public is the most troublesome so far.