Consumer forum asks ICICI to pay Rs 28 lakh

On the day of agreement,the rate was entered by the opposite parties,to be 10.25% p.a. The term of repayment was 120 months,with equal monthly installments of Rs 1,33,539 each. According to the agreement,the rate of interest payable by the complainants was subject to changes based on directives issued by the Reserve Bank of India,from time to time. According to the complainants,the bank kept on charging a higher rate of interest on the sanctioned loan,in utter violation of the RBI regulations.

The complainants spoke to the bank about this with regard to the benefit of lower Prime Lending Rate (PLR)/ CRR,as fixed by the Reserve Bank of India,at 10.25% pa and further requested it to decrease the rate of interest. The two claimed that the bank asked them to pay a 0.5% conversion fee,on the principle outstanding amount plus the applicable service tax to avail the benefit of the reduced rate of interest.

The bank,in its reply stated that the adjustable rate of interest depends on various factors like cost of operations,credit charge and margin associated with the relevant product. It was further stated that the Reserve Bank of India does not fix the PLR/FRR.