Bank's refusal to honor agreed FD interest.

Dear members,
I am Sekar and new to localcircles.com.
In 2014 I booked some 5 years fixed deposits with a private bank, due to their higher interest rate promised to me.
During maturity in 2019 the bank said inadvertently they booked my fixed deposits with higher interest rate without seeing RBI circular and refused to give maturity amount mentioned in the FD receipt. Deducted 0.5% from agreed interest rate. Due to this I lost / received less by 1 lakh in total for all 5 year deposits.

Bank ombudsman is not considering my grievance and suggested me to seek legal options available if I wish.

Last week I have registered my grievance with consumerhelpline.gov.in. and it is under process.

Anyone can suggest I am in right path or any other better options available for my issue?. I do not want to bear the loss due to bank's mistake, which promised higher interest rate, booked FD now justifying their mistake by referring RBI circular issued 10 months prior to my FD and now refused to pay full eligible interest as per FD instrument.
Thanks in advance. more

Helpful Tax, Investments and Retirement Mar 14

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View all 19 comments Below 19 comments

Sandeep Garg

Go to RBI and file a complaint. Bank has passed sweet 5 years and was expected to rectify the same within maturity period. Bank cant say that they ignored the RBI rules by mistake. more

Apr 02

C.S. Narayanan (Medical Radiation Physicist)

Go legal depending on the amount involved. more

Mar 16

Sekar Rg

Yes, it is 1 lakh Rs total loss from all 5 years FDs.

Customer can not bear the loss since the mistake committed by the bank staff, who ignored so called RBI guidelines and attracted customer with higher interest rate.

I believe FD interest rate should not be changed after booking, otherwise the definition of fixed deposit is changed. more

Mar 17

Dayananda Kamath

Is the interest was to be paid periodically that is quarterly/ half yearly or cumulative on maturity. If it is cumulative on maturity then actual amount paid will be less than mentioned in the deposit receipt as maturity value. A disclaimer regarding this will be there on all bank deposits. Since TDS is done as applicable every quarter and your deposit will not earn on TDS paid the maturity value will be less. That is the reason Ombudsman did not help. So if this is the reason chances of you getting a favorable result is bleak and waste of time and money. more

Mar 16

Sekar Rg

Yes , it is the rate of interest .
Bank paid the interest on maturity, 0.5 % less than the rate of interest printed in the FD receipt. more

Mar 17

C.S. Narayanan (Medical Radiation Physicist)

He clearly states it is the rate of interest. What you say is correct. But in this case he is contesting the rate and not the TDS issue or the net amount. He is not getting the quoted rate of interest. more

Mar 16

Sekar Rg

Thank you all for your valuable comments which are helpful to me. I believe from members views, bank to pay the agreed interest for the fixed deposit as per the FD receipt. I will wait for the resolution for the existing grievance with consumerhelpline.gov.in. then proceed for legal action if required. more

Mar 16

RV Varada Rajalu

The Private Bank should honour the rate of Interest as given in the FD Receipt. more

Mar 16

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