Sir,
Union Government and Reserve Bank of India (RBI) should take note of malpractices of banks in respect of credit-cards. Arguments put by banks to have extra-ordinary interest-rate to overcome heavy cost in credit-card operation is in itself confessional for giving banks permission to levy hidden charges to befool customers. Banks can instead levy charges on issuing and transactions made through credit-cards.
Even credit-card statements are designed in a manner like Minimum-Amount-Due to befool customers that they put themselves in heavy dose of interest-rate. Banks also resort to malpractice by deliberately not sending credit-cards statements to make customers defaulters forcing them to pay heavy interest-dose apart from penalty. Any shortfall in payment attracts penalty and interest on complete dues. Penalty imposed for over-limit use of credit-cards should not be permissible. Instead Banks can refuse payment on crossing limit. It is ridiculous that an over-payment of just rupees 100 may attract heavy-penalty of rupees 500 plus GST.
Union Government and RBI should make necessary amendments whereby there may be uniform rules in respect of credit-cards including interest-rate and penalties. Banks may however be at liberty to charge issue and transaction costs to meet operational costs. But in no case, they should be permitted to levy hidden costs in form of extra-ordinary interest-rates for profit-earning.
Madhu Agrawal
Chandni Chowk, Delhi
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