The Credit Card companies appealed to the Supreme Court to stay the 30% ceiling on interest charged on credit cards. However, the SC has refused to stay the order and has issued notice to the RBI, under whose purview these companies function.
You must be inclined to know why Credit Card companies charge such high interest rates and here is the list they furnished in the SC.
- call center and phone banking services
- courier and cost of embossing the card
- cost of sending monthly account statements
- cost of providing internet banking facility
- waiving charges for service reasons
- marketing and promotional offers
- rewards and loyalty programme
We really hope that the RBI will intervene with a response favoring the customers and not the CC companies. Maybe, this is the first test to the newly appointed RBI Governor.