The Delhi High Court in a recent judgement gave relief to a deposit holder after the bank reduced his FD interest rate from 7.75% to 3.5%, citing an RBI circular permitting banks to do this for FDs that are not renewed after maturity.
Justice Avneesh Jhingan and Justice Shail Jain of Delhi High Court ruled that Clause 3.3 of the RBI circular permits banks to determine their own ROI in respect of domestic term deposits for various periods but this discretion is subject to the condition that there is no discrimination between deposits accepted on the same date whether at the same or different offices of the bank.
