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rkg · 2nd June 2007, 13:07

Hi!
iam seriously thinking of writing a compliant to Supreme court as well as to MRTPC against these banks . Input from fellow bhpians required to make it strong. my points are
1. prepayment penalty : i feel is monopolistic trade practice by banks to safeguard their profits and not to allow the consumer his right. the same banks are allowing big companies and guys with no prepayment. point here is i have taken a loan and iam paying it back then why should i pay penalty? there should be penalty if iam not paying not when i pay it back. this the banks are doing to prevent one from taking advantage of arbitrage opportunity available in a free market economy. isn't there futures/options on shares/commodities to take advantage of arbitrage? there are even interest rate futures. why not the same advantage to ordinary citizens? here is thinking of complaining to MRTPC. any suggestions in this regard to prepare the presentation in a proper way
2. applying under RTI act to banks ( many should do it) asking for information on the way banks are fixing the PLR and how RBI rate hikes are effecting it and the relationship between RBI hikes of bank rate, CRR rate Hike to PLR hike. further we should ask information pertaining to floating rates since 2000 to find out whether the banks are equally prompt with respect to decreasing the rates during 200-2004. this we can send to supreme court asking for its intervention on the practice followed by banks. because as far as i know RBI hiked CRR/Bank rate by 0.5 % only whereas ICICI and other banks have hiked the rates by 2%. i would like to know how a 0.5% hike will lead to 2% hike in PLR.
Also the practice of banks not informing the customers about hike in rates/EMI and penalizing them for not fulfilling the commitments( when one is not aware that his EMI is increased how will he keep the appropriate balance in the A/c)
furhter the practice of private banks to lure customers with lower rates and once he he takes the loan hike imm stating it is floating rate. this is nothing but cheating.

How can a bank charge less for new customer a less rate than it is charging already existing customer? In this regard i have lodged a complaint with RBI but there is no response.
inputs from members please

2nd June 2007, 13:07	#55 (permalink)
rkg BHPian Join Date: Apr 2005 Location: bangalore Posts: 380	Input required form fellow BHPians Hi! iam seriously thinking of writing a compliant to Supreme court as well as to MRTPC against these banks . Input from fellow bhpians required to make it strong. my points are 1. prepayment penalty : i feel is monopolistic trade practice by banks to safeguard their profits and not to allow the consumer his right. the same banks are allowing big companies and guys with no prepayment. point here is i have taken a loan and iam paying it back then why should i pay penalty? there should be penalty if iam not paying not when i pay it back. this the banks are doing to prevent one from taking advantage of arbitrage opportunity available in a free market economy. isn't there futures/options on shares/commodities to take advantage of arbitrage? there are even interest rate futures. why not the same advantage to ordinary citizens? here is thinking of complaining to MRTPC. any suggestions in this regard to prepare the presentation in a proper way 2. applying under RTI act to banks ( many should do it) asking for information on the way banks are fixing the PLR and how RBI rate hikes are effecting it and the relationship between RBI hikes of bank rate, CRR rate Hike to PLR hike. further we should ask information pertaining to floating rates since 2000 to find out whether the banks are equally prompt with respect to decreasing the rates during 200-2004. this we can send to supreme court asking for its intervention on the practice followed by banks. because as far as i know RBI hiked CRR/Bank rate by 0.5 % only whereas ICICI and other banks have hiked the rates by 2%. i would like to know how a 0.5% hike will lead to 2% hike in PLR. Also the practice of banks not informing the customers about hike in rates/EMI and penalizing them for not fulfilling the commitments( when one is not aware that his EMI is increased how will he keep the appropriate balance in the A/c) furhter the practice of private banks to lure customers with lower rates and once he he takes the loan hike imm stating it is floating rate. this is nothing but cheating. How can a bank charge less for new customer a less rate than it is charging already existing customer? In this regard i have lodged a complaint with RBI but there is no response. inputs from members please