Iranian Money and Credit Council Amends the Deposit and Bank Facilities Interest Rates
Nouraei & Mostafavi Law Offices – 30 January 2023- Tehran- Iran -According to the notification of the Public Relations of the Central Bank of Iran (CBI), the Money and Credit Council had amended the rates of interests and bank facilities in its 1350th meeting.
The Money and Credit Council (MCC) is CBI’s highest banking policy-making body.
The main points of the MCC’s resolution are as follows:
The ceiling of the annual interest on account rate of investment term deposits is:
1- Normal short-term investment deposit: 5%
2- Quarterly particular short-term investment deposit: 12%
3- Special short-term investment deposit for six months: 17%
4- Long-term investment deposit with a maturity time of one year: 20.5%
5- Long-term investment deposit with a maturity of two years: 21.5%
6- Long-term investment deposit with a maturity of three years: 22.5%
B) The interest rate of facilities of banks and non-banking credit institutions, based on non-participatory contracts, is 23% maximum, and the expected interest rate of participatory contracts citable in the agreement concluded between the bank/non-banking credit institution and the customer is equal to 23%.
C) The interest rate on account of special short-term and long-term investment deposits withdrawn before the maturity will be equal to the interest on account rate of the investment deposit corresponding to its shelf life with a deduction of one percentage point.
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