Credit card: Spend 1 lakh, pay 2.62 lakh

SO you have one of those gold credit cards that offer you a credit limit of Rs 1 lakh? Great, but does that mean you can make purchases till the maximum credit limit. No, even when you pay your dues on time, this is best avoided. Also, there is no upper limit to the interest rates charged on credit cards. Let's recount a case about the rising interest rates levied on credit cards.

RBI's policy states that banks are free to exercise their right in determining interest rates that fall under the category of non-priority sector personal loans, regardless of the size, without referring to the benchmark prime lending rate (BPLR).