Bank fixed deposit
lia12345
(Querist) 02 September 2015
This query is : Resolved
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 jul’14 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 Jul’14, 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 didn’t follow and also they didn’t inform at the time of revision. Can I sue the bank?
Kumar Doab
(Expert) 02 September 2015
If the valid interpretation is that interest on the date FDR is created shall remain fixed for tenure of FDR then you certainly have a claim.
lia12345
(Querist) 02 September 2015
Many thanks for answering the query.
Bank states that since RBI regulation was there that NRE fixed deposit rate cant be higher than domestic fixed interest rates, so they are force to make changes in Interest rate.
My concern is that, they have informed me only after 17 months of implementation of revised FD rate, And now they are not giving me the promised interest in FD receipt, The bank is blaming RBI.
But RBI rule was implemented on 1st march 2014 and my date of investment was on May 2014.
Kindly advice could I make a claim against Bank, IF so what's the procedure to do that.
malipeddi jaggarao
(Expert) 03 September 2015
Though the Bank quotes RBI regulations, it did not follow at the time of opening and it did not intimate the change in time. The Bank is liable to pay the agreed rate of interest till the date of maturity. Serve a legal notice and file a complaint in consumer forum.
Rajendra K Goyal
(Expert) 03 September 2015
NRE deposits are subject to RBI / GOI guidelines.
Has Bank mentioned 9.75 % rate of interest on your FDR, if so you can lodge complaint to their controllers / head office / RBI / Banking ombudsman.
Generally such FDR's contains the clause that the deposit is subject to RBI / GOI Guidelines.
If the rate of interest was quoted by mistake, Bank would regret for it as it can not go beyond policy.
Master Circular on Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) (NRE) Accounts dated 01.07.2015.
4.1.1 Interest Rates on NRE/ NRO Deposits
With effect from December 16, 2011 banks are free to determine their interest rates on both savings deposits and term deposits of maturity of one year and above under Non-Resident (External) Rupee (NRE) Deposit accounts and savings deposit under Ordinary Non-Resident (NRO) account (interest rates on term deposits under Ordinary Non-Resident (NRO) account are already deregulated) . However, interest rates offered by banks on NRE/ NRO deposits cannot be higher than those offered by them on comparable domestic rupee deposits. The ceiling rate of interest prescribed on NRE deposits prior to December 16, 2011 are given in Annex 1 of this circular.
https://rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9867#4
Kumar Doab
(Expert) 03 September 2015
Your counsel may opine that the bank can be made liable for not supplying the communication by effective mode of communication.
The customer has the right to determine whether to continue or withdraw.
If the Bank/banker/BM claims that it had sent the communication then it has to produce proof and/or returned cover.
Falsification of record is offense and shall complicate the matter for Bank/banker/BM.
Show all record to an able counsel and the counsel that has examined everything on record can opine the validity of claim.
Guest
(Expert) 03 September 2015
How much is the total amount that was put in the FD and also what was the mode of deposit?
