The Supreme Court on Monday asked the RBI to communicate within six weeks to NGO Moneyline Foundation's on its plea for refunding the excess interest charged from those raising loans under the floating interest system but not getting the benefit of reduced interest rates.
A bench of Chief Justice Ranjan Gogoi, Justice Sanjay Kishan Kaul and Justice K. M. Joseph directed the Reserve Bank of India (RBI) while hearing a plea by Moneyline Foundation.
Sucheta Pandurang Dalal is the other PIL petitioner in the case.
The court said: "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 October 12, 2017 to the petitioner(s) within six weeks from today"
"Thereafter, the petitioners, if still aggrieved, will be at liberty to approach this court once again. "
The court noted that the RBI by its December 26, 2017, letter had informed the NGO that the issues raised by it through a communication dated October 12, 2017 are under consideration.
The NGO had told the court that since it did not get further response from the bank, it was left with no option but to approach the top court to secure its rights.
The petitioners had sought a direction to the banking institutions and Non - Banking Financial Companies (NBFC) to calculate the amount of excess interest charged to existing borrowers of home, education and consumer goods loan under floating rate regime by denying them the benefit of reduced interest rates from time to time.
The petitioners sought refund of the excess amount charged.
The petitioners also sought that the banking companies and NBFCs be directed that so far as floating rate loans are concerned there can be no conversion charge on customers entitled to avail of lower rate of interest.
Seeking that the periodicity of reset under MCLR system be conducted quarterly, the PIL also sought that borrowers be intimated of change in repo rates and corresponding reset within a day of such change by at least three modes of communication.
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