Parliamentary panel for capping of interest rates on credit cards

 “Maximum interest rates to be charged by banks from credit card customers may be specified so as not to allow exploitation of customers by banks,” a report of the Standing Committee on Finance, which was tabled in Parliament recently, said.

The Committee did not agree with the contention of the Finance Ministry that credit card dues are in the nature of non-priority sector personal loans and hence, the banks should be free to decide the interest rates.

Even the RBI’s circular covering various aspects relating to credit card operations of banks has not been of much help in addressing the grievances and complaints of general public, the committee noted. RBI’s circular asks banks to ensure prudence while issuing credit cards.