The Supreme Court on Monday admitted the appeals of Standard Chartered Bank, HSBC and Citibank challenging the order of the National Consumer Commission imposing restriction on charging credit card holders an interest rate in excess of 30 per cent.
The Indian Banks' Association has also been added as an intervener. The bench, headed by Justice B N Agrawal, issued a notice to Awaz, an organisation that moved the National Consumer Commission against what it dubbed as usurious interest.
According to the banks' counsel, the lenders are following the guidelines of the Reserve Bank of India, which is the only authority that can regulate interest rates. Therefore, the commission has no jurisdiction to pass an order directly to the banks, the counsel said.
"There is no unfair trade practice as defined in the Consumer Protection Act as there is no misrepresenation." The customers signed the agreement after reading the terms, it contended.
