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Issuers in India reportedly are considering increasing annual fees on credit cards if the country's Supreme Court upholds a National Consumer Disputes Redressal Commission decision to cap interest rates at 30%. Large issuers in India, including HSBC and Standard Chartered Bank, have challenged the cap from the commission, a quasi-judicial agency. Comments from issuers and government officials were not immediately available because of the country's 2 Oct. national holiday honoring the birthday of Mahatma Gandhi. Issuers argue that capping interest rates contradicts a policy from the Reserve Bank of India, the country's central bank, that gives financial institutions freedom to fix their own rates on many personal loans, according to the Business Standard newspaper. The Reserve Bank recently called on issuers to offer more information and transparency on card rates and fees, a move meant to draw attention to India's relatively high card costs (CardLine Global, 4 Sept.). To counter a potential cap on interest rates, issuers reportedly are trying to move cardholders to platinum or titanium cards, which charge higher annual fees.
