Case Law Analysis
Unilateral hike of loan interest beyond RBI Base-Rate is unfair trade practice and deficiency in service | Bank loan interest dispute : Delhi SCC
A Delhi consumer commission ruled that a bank’s unilateral increase of loan interest above the RBI-prescribed base-rate, without informing the borrower, amounts to deficiency in service and an unfair trade practice. The bank must revert the rate, refund excess interest and pay compensation, safeguarding borrowers from arbitrary rate hikes.