CHENNAI: The Madras High Court has ordered notices to the Reserve Bank of India on a public interest litigation petition seeking to regulate credit card operations and protect the welfare of consumers.
The First Bench of Chief Justice A.P. Shah and Justice P. Jyothimani adjourned the matter to August 27 for further proceedings.
P. Sundararajan, managing trustee of the Centre for Social and Economic Justice, prayed for a direction to the Centre, the RBI and other private banks offering credit card services to ensure the strict implementation of the RBI’s guidelines in the Master Circular on Credit Card Operations of Banks.
The guidelines dealt with all aspects of credit card business, including marketing and debt collection. It was mandatory for banks and non-banking financial companies to adhere to the guidelines, he said. The petitioner said the ‘welcome kit’ and the brochures were only in English, whereas the guidelines required the companies to provide rules, regulations and other details in English, Hindi and the local language. The billing system was complicated with unsolicited insurance policy premiums.
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