Supreme Court Allows Banks To Charge Up To 30% Extra Interest On Credit Card Dues, Aims To Promote Financial Discipline | Paisa Live

In a recent ruling, the Supreme Court has stated that banks can now charge up to 30% extra interest on credit card dues if payments are delayed. This marks a significant change from previous decisions, with the court reversing the 2008 NCDRC ruling that deemed high interest rates unfair. The ruling aims to encourage financial discipline among credit card users, ensuring they make payments within the set deadline. The court emphasized that credit card holders are properly informed about interest rates during the application process, and both the Supreme Court and RBI clarified that the decision was not in favor of banks but was intended to promote responsible financial behavior. Banks have the autonomy to set interest rates under the Banking Regulation Act, 1949.