In a verdict that would have a direct and significant impact on millions of consumers, mostly middle-class, the Supreme Court set aside a 16-year-old cap on the interest rate on credit card dues that the National Consumer Disputes Redressal Commission (NCDRC) had placed on banks. The apex court said banks can charge more than 30 per cent interest.In July 2008, the commission had held that annual interest rates ranging between 36 per cent and 49 per cent were exorbitant and amounted to the exploitation of borrowers. But hearing appeals filed by Citibank, American Express, HSBC and Standard Chartered Bank, a bench of Justices Bela M Trivedi and Satish Chandra Sharma said NCDRC’s verdict was “illegal” and an interference with the clear, unambiguous delegation of Reserve Bank of India’s powers.
