Legal Question in Banking Law in India

Deposited a Fixed Deposit with PSU Bank in May 2014 for 5 yrs. The interest rate was 9.75%. RBI regulation was there that NRE fixed rate cant be higher than domestic fixed interest rates. After 17 months I received intimation that fixed rate is revised to 9% stating rbi guidelines.

When I enquire, the bank is stating that my fixed deposit rate was revised in jul14 and it was communicated now.

Kindly give me ur opinion:

1) I had better interest rates in other bank with 9.5% interest rate and I missed it. Can I claim for the loss?

2) if they had intimated in Jul14, still I had option of switching my fd to other banks. I missed that run and they are informing only now.

Rbi guidelines was effective from 1st mar 2014, which they didnt follow and also they didnt inform at the time of revision. Can I sue the bank?


Asked on 9/02/15, 10:20 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

03.09.2015

Dear Sir / Madam,

Yes, the Bank remains legally liable to compensate you for the losses incurred by you for their lapses.

Regards,

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Answered on 9/03/15, 4:16 am


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