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 ?
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 ?
Published by CardBhai @ 11:11 PM
1 Reader Comments
1 Comments:
The only way the banks are going to reduce interest rate to 18% is by making the method of issuing credit cards stringent. We tax payers and non defaulters are paying such high interests because of the methodology of issuing the credit cards where there is no credit rating done on the individuals. The basics are not followed whereby a person not having paid tax or without a PAN number is given a card and they feel it's easy money and defaults on repayment. Because of these defaulters others have to pay high interest rates.
I feel once this is addressed the banks will also reduce rates because they are sure of getting ALL THEIR MONEY BACK.
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