If there is a delay in depositing the credit card bill, then a huge penalty will be imposed, know here what the Supreme Court has ordered.

If you often miss paying the credit card bill, then be ready for a higher penalty. The Supreme Court has ruled that banks can now charge 36-50% annual interest on late payments, which was earlier capped at 30%.

What did the Supreme Court decide?

The National Consumer Disputes Redressal Commission (NCDRC) had previously set a 30% limit on interest on late payments in 2008, calling the higher charge an unfair trade practice. However, on December 20, 2024, the Supreme Court overturned this decision, allowing banks to charge higher late fees.

Who will be most affected?

This decision affects users who often delay their credit card payments. Banks like HSBC, Citibank, and Standard Chartered had challenged the previous NCDRC decision, and now they will benefit from this decision.

Key points:

To avoid hefty penalties, pay your credit card bills on time. Failure to pay now could cost you a lot more in the form of interest charges.