INDORE: The Madhya Pradesh High Court on Saturday issued notices to the Reserve Bank and the Finance Ministry on a petition challenging nationalised banks' practice of calculating interest rates on saving accounts. Justices R S Garg and A M Sapre of the Indore Bench of the court issued notices on a petition filed by financial adviser Mahesh Natani and one Ajit Kumar Jain. In his petition, Natani said the RBI direction to banks on counting interest on deposits was six-decade old, which is based on chargeable interest rate on the lowest amount deposited between 10th and last day of every month. "This is just opposite in case of credit," he said in his petition, adding that as per the RBI direction, interest rate in case of credit is calculated on daily basis. The petitioners claimed that the practice was causing loss to the tune of Rs 8,500 crore to the depositors. They also wished to know if banks can count rate of interests on daily basis in credits, why it can't do the same on saving accounts, especially when maximum banks have been computerised. They said, "we have requested High Court to give direction to RBI to review its policies in this matter." The court has given time till May 15 to RBI and Finance Ministry to reply in the matter, the petitioners added.
26 Apr, 2008, 2129 hrs IST, PTI
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About Me
- Kamal Kumar Pandey (Adv. Supreme Court of India)
- Lawyer Practising at Supreme Court of India. Court Experience: Criminal, Civil & PIL (related to Property, Tax, Custom & Duties, MVAC, insurance, I.P.R., Copyrights & Trademarks, Partnerships, Labour Disputes, etc.) Socio-Legal: Child Rights, Mid Day Meal Programme, Sarva Shiksha Abhiyaan, Women Rights, Against Female Foeticide, P.R.Is, Bonded Labour, Child labour, Child marriage, Domestic violence, Legal Literacy, HIV/AIDS, etc. Worked for Legal Aid/Advise/Awareness/Training/Empowerment/Interventions/Training & Sensitisation.
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