Banking intereste rate counting

This query is : Resolved 
 

Online (Querist)
29 December 2011

Can Reserve Bank Of India give Direction to count Interest Rate if excessive under section 35A of Banking Regulation Act 1949?
Who has power to decide Interest Rate When it seems excessive ?



Shonee KapoorOnline (Expert)
29 December 2011

Interest rates on what?

There are certain products where RBI decides the interest rates and there are certain categories where banks have the freedom to decide the interest rates.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

prabhakar singh (Expert)
30 December 2011

Interest are regulated by RBI.Banks work on spread of lending rate RBI fixes as rate of lending to banks.
If the working of any bank is found offensive to the interest of public at large or detrimental to the interest of banking industry itself,RBI is empowered to issue even particular directions to the one concerned bank.

Nadeem QureshiOnline (Expert)
30 December 2011

Dear vinesh
only RBI have power to decide the interest rate.

RAJU O.F., (Expert)
30 December 2011

Rates of interest for loans are decided by individual banks and not by RBI. If the borrower felt the rate charged by one bank is more/excessive, he can switch over to another bank having lesser rates. If the bank had charged interests than the agreed rates, Courts are empowered to fix the rate of interest as per 'Ravindras case' decided by Supreme Court.

Surendra Gupta (Expert)
30 December 2011

Rates of interest for loans are decided by individual banks and not by RBI. If the borrower felt the rate charged by one bank is more/excessive, he can switch over to another bank having lesser rates. If the bank had charged interest higher than the agreed rates (as per the loan documents executed), Courts are empowered to order refund.



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