A big update related to credit cards is coming out. The Supreme Court has rejected a 16-year-old decision of the National Consumer Disputes Redressal Commission (NCDRC). NCDRC had earlier said that charging excessive interest on credit card dues is wrong. This is wrong with the customers. Now the Supreme Court has given its verdict on this.

Supreme Court decision

According to this decision, banks can now charge more than 30 percent interest on the outstanding amount on credit cards. The case pertained to appeals filed by Citibank, American Express, HSBC and Standard Chartered Bank against the NCDRC decision in 2008. NCDRC had said that the interest rate on credit card dues is very high ranging from 36 to 49 percent.

NCDRC's comment said wrong

Overturning this decision, the Supreme Court said that this comment of NCDRC is wrong. The court said that under the guidelines of the Reserve Bank of India, banks have the right to decide the interest rate. NCDRC does not have the right to change the contract between the bank and the customers. The court also said that the banks had not given any false information to cheat the credit card holders.

no right to interfere

Along with this, the court also said that under the Banking Regulation Act, RBI has the right to fix the interest rates for banks. No one else has the right to interfere in this. If the banks have not imposed unfair conditions then no action can be taken against them.