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Where’s the Watchdog? RBI ‘Mute Spectator’, Allowing Banks To Charge High Interest Rates, Says HC

The court determined that the banking ombudsman failed significantly in adjudicating the petitioner’s case.

The court noted that the petitioner was consistently charged a higher interest rate throughout the loan tenure without any apparent justification.

The Allahabad High Court has observed that the Reserve Bank of India has been a “mute spectator” while banks are imposing arbitrarily high-interest rates on customers despite guidelines issued by the banking regulator.

The observation was made by a bench comprising Justices Mahesh Chandra Tripathi and Prashant Kumar while disposing of a petition filed by Manmeet Singh who had availed of a loan of Rs 9 lakh from a private bank.

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Namit writes on personal finance, economy and brands. Currently contributing to News18.com as a Senior Sub Editor in the business vertical. Prior to t…Read More

Source: News18