The instant consumer complaint was registered by Mr. Asoke Goyal and others under section 12 read with section 17 of CP Act, 1986 against State Bank of India, Station Feeder Road branch, Siliguri.
The complainant’s case in short is that they were sanctioned house loan having limit of Rs. 77,00,000/- on 28/01/2008 by the OP bank after mortgaging 11.25 kottah of land and since then they were paying the EMI on regular basis through their house loan A/C No 30317072815 and up to 1/07/2010 the outstanding balance of loan account of the complainants was Rs. 58,40,119.70.
The complainants further case is that in the year 2015 they came to know that RBI had issued a master circular on 01/07/2010 by which since 01/07/2010 all categories of loans should be priced with reference to the base rates and in that circular it was inserted that existing loans based on BPLR system may run till their maturity and in such cases if the existing borrowers want to switch over to the new system , an option to be given to the borrowers for such switch over to the base rate without obtaining any switch over charge.
That on 09/09/2015 the complainant visited the bank and asked the officials as to why they were not informed by the Bank about such option and as to why the Bank intentionally charged higher rate of interests suppressing the master circular dated 01/07/2010. But the bank officials did not make any explanation and for that reason by letter dated 24/09/2015 the complainants asked the Bank officials to change the interest rate of loan account as per base rate since 01/07/2010. But the Bank officials refused to do the same. So, the complainants approached this redressal commission to ask the Bank to change the floating interest to base rate interest since 01/07/2010and to pay interest over the excess interest already realized, compensation, litigation cost etc.
The SBI has contested the case by filing W.V and contended that the complainants never approached the Bank by submitting any option that they wanted to switch over from the floating rate of interest to base rate and for that reason the Bank had no latches and deficiency of service.
The complainant and the OP no. 1 have been examined in this case as PW-1 and OPW-1 and were cross examined by each other in the shape of questionnaires and replies.
Argument of both sides was heard at length.
Decision with reason
Admitted position is that the complainant has borrowed Rs. 77,00,000/- as house loan from the SBI in 2008 and since then the complainants were paying floating rate of interest along with the principle amount of loan though their loan A/C on EMI basis. It is not disputed that since 01/07/2010 the RBI issued a master circular by which all existing borrowers may submit option to the lender bank to shift the floating rate interest to minimum base rate and in such event, they were permitted to enter into a mutual contract with the lender bank to avail such privilege. The main dispute in this case is that the bank was realizing the floating rate interest from the complainant’s loan A/C without intimating them to avail such facilities of base rate interest by submitting the option.
The complainant Asoke Goyal who himself conducts the hearing of the case mentioned that the bank in order to squeeze more interest intentionally, suppressed the existence of RBI circular dated 1.7.2010 whereas the higher management of SBI by E-circular dated 01.06.2011 asked all its branches to extend the benefit of RBI. Master circular dated 01.07.2010 for existing loan accounts for obtaining option to switch over from SBAR to the base rate with the consent of the borrower on charging 1% switch over fee on a war footing during the month. But the bank has not informed the complainants for such switch over which not only violated the master circular of RBI but also violated their own SBI circular. Ld. Advocate of the bank Mr. R. Chakraborty argued that the SBI Station Feeder Road Branch has circulated the SBI circular dated 1.6.2011 in conformity of RBI. Master circular dated 01.07.2010 through banking website and display board in the bank inviting options from the borrowers to submit option of such change of interest rate. But the complainants never put any such option. So, the bank had no fault.
Here is this particular case, the unfortunate complainants/ borrowers could not available the facility of switch over the bank rate of interest as they were not aware or rather, they were not so vigil to available such facilities till 9/09/2015 where furnishing option an indispensable requisite on their part.
The clause 2.3.6 of RBI master circular dated 01/07/2010 invites the borrower’s option as sine qua non.
So, in this present dispute there was no deficiency of service on the part of OP/ Bank till 08/09/2015.
Since the complainants approached the OP/Bank on 09/09/2015 for switch over the floating rate of interest to base rate interest, the Bank had no other option but to have a mutual agreement to switch over the rate of interest in this given case. So, the Bank/OP had violated the mandatory provision of RBI guide line and adopted unfair trade practice since 09/09/2015. So, in this perspective this instant consumer complaint stands on its merit.
Hence, it is ordered,
That the instant consumer complaint is allowed on contest without any cost. The direction upon the OP/Bank are as follows: -
- The OP /Bank (OP No 1 and 2) are directed to cause switch over the instant loan transaction as base rate interest basis since 09/09/2015 within a month. Excess interest above the base rate if any has already realized from the complainants, then the said amount to be refunded to the loan A/C of the complainant with interest to be calculated on the same base rate interest within a month.
- For deficiency of service and unfair trade practice the Ops/Bank are directed to pay Rs. 50,000/- as compensation and Rs. 5,000/- as litigation cost to the complainants within 45 days. Any flout of this order on the part of OP/Bank shall invite cost of delay of Rs. 300/- per day to be deposited to the C.W.F of W.B.
Let a copy of this order to be supplied to the parties free of cost.
