[AI] Rs. 2900 crores - extra charges collected via your credit cards

Pradeep banakar pradeepsocialwork at gmail.com
Fri Jun 27 10:09:19 EDT 2008

Rs 2,900 crore
Through late payment charges and penalties on YOUR credit card, banks have amassed ..Sneha Shah

Most credit card holders may not feel the pinch of the miniscule late payment charge of Rs 300 that is levied on the card each month. However, according to a complaint filed by the All India Credit Cards Users Welfare Association (AICCUWA), this miniscule amount along with sundry charges such as charging penalty fees and other charges have helped banks amass nearly Rs 2,900 crore listed as 'other incomes'.

In April this year, the AICCUWA had filed a complaint with the Monopolies and Restrictive Trade Practices (MRTP) Commission to investigate the 'other incomes' of the banks as listed in their balance sheets. 

Milind Yevatkar, GS, AICCUWA, said, "If we study the balance sheets of the banks we get to know that they have amassed around Rs 6,000 crore through other incomes." 
Of the amount, nearly Rs 2,000 crore is collected as late payment charges and Rs 900 crore as penalties. 

An MRTPC official said that they have taken suo motu action against the banks in this matter and further investigations were on.

Unfair charges
Last year, acting on complaints received by the various grievance and consumer rights protection bodies, the MRTP commission had instituted an inquiry against various unfair practices by banks in India. 

The commission directed the DG (Investigations and Registrations) to investigate and file report. S P Dev, Additional DG, MRTP, said, "A report against eight banks like ICICI bank, HDFC bank, Citi bank and other foreign banks was filed." 

Feel cheated by banks? - Write to MRTP Commission in Delhi

URL: http://epaper2.mid-day.com/midday/scripts/epaper/epapermain.aspx?queryed=9 

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