Consumer Case
P.Balasubramaniam
(Querist) 09 January 2009
This query is : Resolved
Please any one guide me
In a housing loan, the banks will be increased the rate of interest immediately, once the RBI increased the rate of interest, but the banks will not decrease the rate of interest, if the RBI is decreased the rate of interest? can i approach the consumer forum???
J. P. Shah
(Expert) 11 January 2009
THE RATES OF INTEREST ON DEPOSITS AND LOANS ARE NOT CONTROLLED BY RBI AND IT DOES NOT GIVE DIRECTIONS TO BANKS. DUE TO LIBERALISATION, THESE POWERS ARE NOW WITH INDIVIDUAL BANKS AND THEY DECIDE BASED ON MARKET FORCES AND ARE LINKED TO PLR OF EACH BANK. RBI HAS FORMULATED A POLICY WHICH THE BANK FOLLOW. ACTUAL RATES ARE WORKED OUT BASED ON POSITION OF INDIVIDUAL BANKS AS TO COST OF FUNDS, MARKET FORCES, DEMAND AND SUPPLY OF MONEY ETC. HENCE LEGALLY HIGH COURT OR CONSUMER FORA WILL NOT INTERFERE, UNLESS THE RATES ARE EXORBITANT. RATES ARE COMMERCIAL DECISIONS OF BANKS.
MANISH
(Expert) 14 January 2009
Dear Sir,
In the present case, you may not have option to go to any consumer fora or to the high court, as has been held by Sh. J.P. Shah; as here the question relates to that of Contract.
However, a PIL may be filed by some person who is not interested party in this regard in High Court for the issuance of appropriate writ, direction or order.
RAKHI BUDHIRAJA ADVOCATE
(Expert) 10 January 2009
