Hongkong Andshanghai Banking Corp. Ltd vs Awaz

insc-2024-1044 Supreme Court of India 20 December 2024 • CIVIL APPEAL NO. 5273 OF 2008; CIVIL APPEAL NO. 5294 OF 2008; CIVIL APPEAL NO. 5627 OF 2008; CIVIL APPEAL NO. 5278 OF 2008; CIVIL APPEAL NO. 6679 OF 2008; Civil Appeal No. 5273 of 2008 • 41 min read

Judges (2)

Bela M. Trivedi Coram Satish Chandra Sharma Delivered

Parties (7)

American Express Banking Corporation Appellant Awaz Respondent Citibank Appellant Hongkong and Shanghai Banking Corp. Ltd. Appellant Housing Development Finance Corporation Intervener Reserve Bank of India Respondent Standard Chartered Bank Appellant

Case Significance

Hongkong Andshanghai Banking Corp. Ltd vs Awaz is a Supreme Court of India decision dated December 20, 2024 (citation: insc-2024-1044). The Supreme Court allowed the appeals of major banks (HSBC, Citibank, American Express, Standard Chartered) challenging the NCDRC's order that held credit card interest rates of 36%-49% per annum to be usurious and exploitative. The Court held that interest rates charged by banks are determined by RBI directives and financial wisdom, are duly communicated to cardholders, and cannot be characterized as unconscionable or unilateral. The NCDRC's direction to RBI to cap interest rates was set asi The bench comprised Justices Bela M. Trivedi and Satish Chandra Sharma. The judgment was delivered by Justice Satish Chandra Sharma.

Summary

The Supreme Court allowed the appeals of major banks (HSBC, Citibank, American Express, Standard Chartered) challenging the NCDRC's order that held credit card interest rates of 36%-49% per annum to be usurious and exploitative. The Court held that interest rates charged by banks are determined by RBI directives and financial wisdom, are duly communicated to cardholders, and cannot be characterized as unconscionable or unilateral. The NCDRC's direction to RBI to cap interest rates was set aside as being contrary to the Banking Regulation Act.

What was the outcome of Hongkong Andshanghai Banking Corp. Ltd vs Awaz?

The Supreme Court allowed the appeals of major banks (HSBC, Citibank, American Express, Standard Chartered) challenging the NCDRC's order that held credit card interest rates of 36%-49% per annum to b...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (insc-2024-1044)