New central bank directives have put an end to the payment of daily interest on deposits, and only a minimum one-year deposit is allotted interest at 22 percent. Reports indicate, however, that some financial institutions are still offering daily interest rates at 27 percent per annum.
The joint meeting of bank executives and directors of the Central Bank set interest rates between 10 to 22 percent depending on the length of the fixed term. Interest will be paid on fixed deposits of at least one month, which will earn a 10 percent interest rate. The highest interest rate of 22 percent will only be allotted to fixed deposits of one year or longer.
The Mehr News Agency reports that new directives will be implemented starting Monday December 22.
The report adds that violation of these regulations will lead to written warnings followed by cash fines for repeat violations.
The move comes after President Rohani announced that the Money and Credit Council must adjust interest rates to reflect the declining inflation rate.