Petitioners said loan rates were not being reduced in tandem
The Supreme Court on Monday directed the RBI to come up with a decision on a representation that banks are delaying passing on the benefit of lower interest rates to those who have taken loans at floating interest rates.
A Bench of Chief Justice of India Ranjan Gogoi and Justices S.K. Kaul and K.M. Joseph asked the RBI to communicate within six weeks its decision to the public trust ‘Moneylife Foundation’, which has filed the representation alleging that banks and financial institutions take a tardy approach in lowering interest rates despite the central bank’s decision on the repo and reverse repo rates.
“According to the petitioner(s), it has not been informed of the result of such consideration leaving the petitioners with no option but to approach this Court... We are of the view that, at this stage, the Reserve Bank of India should be directed to communicate its decision in the matter covered by the representation/ letter of the petitioner(s) dated 12.10.2017 to the petitioner(s) within a period of six weeks from today,” the Bench said.
It granted liberty to the Trust and others to approach the court again if they were not satisfied with the response of the RBI.
