Supreme Court stays Cap on Interest for Credit Cards

This comes as a shock as the Supreme Court of India’s decision is against the interest of the Indian consumer. You may recall that last July, a consumer court had capped the interest rate on Credit Cards at 30%. The consumer court decision really made sense, but we got to honor the Supreme Court’s decision and pay APRs as high as 40% now. Ridiculous!!!

Citibank, HSBC and Standard Chartered bank’s credit card division had appealed against the interest rate cap. It is really pathetic that these banks are looting the ill-informed Indian consumer and yet the RBI has decided to turn a blind eye.

The Finance Ministry along with RBI can come out with regulations and cap the rate of interest on credit cards at a maximum of 18%. We don’t like 30% or 40% which is totally unethical and pathetic business practice. Do you think this will ever happen ?

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