In a landmark judgment, the National Consumer Disputes Redressal Commission has ruled that Credit Card APR or Interest Rates in excess of 30% in India is illegal. Additionally, they have said, penal interest can be charged only once for one period of default and shall not be capitalized.
You are already aware that Indian Credit companies like ICICI are charging 49% interest rate. Thsi is a severe blow to such Banks and Credit Card companies who have no ethical practices in place. The court also said,
In our view, there is no justifiable ground for adopting the highest rate of interest prevailing in smaller economies. Further, there is no justifiable ground in not even attempting to follow what is prevailing in developed countries.
This order was very much essential as the Nations financial watchdog, RBI is either in deep slumber or officials related to supervision of credit card Interest rates are under the influence of corruption, which needs immediate attention and investigation.