MPs want interest on credit card dues regulated

Times of India, April 21, 2010

NEW DELHI: A key committee of Parliament has come down heavily on the country?s central bank for what it perceives an ?indifferent attitude towards? problems of credit card customers. Parliament?s standing committee on finance has also favoured some sort of regulation of interest rates charged by banks on credit card dues and personal loans. The committee had earlier recommended the RBI to tighten the guidelines on credit cards. It has criticised the RBI for not taking action on the recommendations in its assessment of the government?s action taken report. ?Such approach clearly indicates indifferent attitude towards the problems of customers in these matters,? the committee noted. The committee also did not agree with the government?s explanation that credit card dues were non-priority sector lending and interest rates on such loans were at the discretion of the individual bank. Arguing for some ceiling it said, ?Maximum interest rates to be charged may be specified so as not to allow exploitation of customers by banks.?

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