Fri Dec 20 17:33:52 UTC 2024: ## Supreme Court Overturns Ruling Limiting Credit Card Interest Rates
**NEW DELHI, December 20, 2024** – The Supreme Court of India has overturned a 2008 National Consumer Disputes Redressal Commission (NCDRC) ruling that capped credit card interest rates at 30%. The court allowed appeals filed by banks challenging the NCDRC’s decision, which deemed interest rates exceeding 30% per annum on credit card dues as an unfair trade practice under the Consumer Protection Act.
The 2008 NCDRC order addressed concerns over banks charging credit card users interest rates ranging from 36% to 49% for late or missed payments. The commission considered these rates “usurious” and ruled that charging interest exceeding 30% was an unfair trade practice. Furthermore, the NCDRC prohibited the capitalization of penal interest and the charging of interest with monthly rests.
The Supreme Court’s decision, delivered by Justices Bela Trivedi and Satish Chandra Sharma, reverses this long-standing ruling. A copy of the full judgment is pending release. This decision is likely to have significant implications for credit card holders and the banking industry in India.
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