India, Dec. 25 -- The Supreme Court last week struck down a decision of the apex consumer forum that directed banks not to levy penal interest of above 30% on credit card users who either default or delay payment of dues within the stipulated time.

The court held that the July 7, 2008 decision of the National Consumer Disputes Redressal Commission (NCDRC) lacked the jurisdiction to deal with a matter which was a private contract entered between the credit card user and banks. Credit card holders are largely educated people who are aware of their obligations of timely payment and penalty in the case of delay, the top court said. The discretion to levy the quantum of interest was left to the banks by the Reserve Bank of India (RBI), the st...