In Brief
The Supreme Court quashed a National Consumer Disputes Redressal Commission decision that capped credit card interest rates at 30% per annum. The Court held that interest rate regulation falls exclusively within the Reserve Bank of India's statutory domain under the Banking Regulation Act, 1949, and cannot be adjudicated by consumer forums. Section 21A of the Banking Regulation Act bars courts from reopening banking transactions on grounds that interest is excessive. The complainant organization lacked standing as it failed to obtain prior permission for representative complaints. Banks had transparently disclosed all terms including interest rates, and there was no evidence of misrepresentation or deceptive practice. Courts cannot rewrite contract terms between banks and cardholders; such decisions are reserved for RBI as the expert regulatory authority.
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