Supreme Court Overturns 30% Interest Cap on Credit Cards

In a major relief for banks, the Supreme Court has nullified a 2008 NCDRC ruling that capped credit card interest rates at 30% per annum for late payments. A bench comprising Justices Bela Trivedi and Satish Chandra Sharma ruled that setting such a ceiling is beyond the jurisdiction of the National Consumer Disputes Redressal Commission (NCDRC), as interest rate regulation falls under the Reserve Bank of India’s purview.

Banks, including Standard Chartered, Citibank, American Express, and HSBC, had challenged the NCDRC’s decision, arguing that it interfered with RBI’s statutory role in regulating interest rates.