Fill in the following details to e-mail
To
Cc
Subject
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> <br /> <br /><br /> Increase in floating rate of interest arbitrarily and without transparency can warrant court interference<br /><br /> MANU/RB/0005/2015 - (08 Jun 2015)<br /><br /> </td> </tr> <tr> <td align="left" valign="top">ICICI Bank Limited v. Pankaj Goyal</td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE"><strong>Consumer courts can give relief if banks lending to consumers on a floating interest rate arbitrarily, without notice to the borrower and non-transparently alter the interest rate. In the instant case, where the lender bank had increased the rate of interest payable by the borrower and extended the duration over which it was to be paid without notice to the Respondent, the Punjab State Consumer Dispute Redressal Commission reverted the rate of iterest to its initial figures. The Commission was unable to find conformity with the bank's Asset-Liability Management and RBI guidelines pertaining to floating rate increases.</strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Relevant : Central Bank of India vs. Ravindra and ors. <manuid>MANU/SC/0663/2001</manuid> Corporation Bank vs. D.S. Gowda and Anr. <manuid>MANU/SC/0788/1994</manuid></strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Tags : consumer, floating rate, loan</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <!--<td><strong>Source : <a target="_new" href="http://www.manupatrafast.com/">newsroom.manupatra.com</a></strong></td>--> <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top"> </td> </tr> </table> </div> </body> </html>