Hongkong Andshanghai Banking Corp. Ltd vs Awaz

The Supreme Court held that the charging of interest rates exceeding 30% per annum by banks on credit card payments constitutes an unfair trade practice under the Consumer Protection Act, 1986. The Court emphasized that penal interest can only be charged once for a single period of default and cannot be capitalized. The Court also ruled that the Reserve Bank of India has the exclusive authority to regulate interest rates, and the National Commission's interference in this domain was beyond its jurisdiction as per Sections 21A and 35A of the Banking Regulation Act, 1949.