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rmoneylAte 304.3'dFloor,HindService
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lrust Registfation
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B0(G)RegistrationNo.DIT(E)/MC/80G/585/2010-
|I http://foundation.moneylife.in/
72 October2077
Dr Urjit Patel
Governor
l(eserve banK ol lndra
Mumbai
DearDr Pate1,
As vou are plobably awale, we at Moneylife have been raising the issue ol
arbitrarv anrl opaqug-policy of banks in l'espect of floating interest rates'
Borrowerswho have taken loaus on a floatlng rate basis suffel an immediate
increasein rates when rates go uP but do not get much relief when rates go
down. We have highlighted this issuein two articlesin Moneyiife magazine'
rnoneylEfe
v I
they have charged (through arbitrary and ad hoc calculations of base rate or
MCLR) and refund the money to borrowers, especially r.etail borrowers and
SMEs.The RBI should also direct banks to set up specialheiplines to handle
complaints fi'om borlowers, whom banks have overcharged over the years. We
also requestthe ReserveBank to immediatelyissue circular/masterdirections
askingbanks and financialinstitutionsto allow existingborrowersto migrateto
MCLR ol any new systemwithout anv conversionfee or any otherchargesfor
the switCrtrover.
We are taking the liberty of attachingour articleson this issuewith this request
letter.This is alsoraisedthe issueof unfair loan agreementsand one-sidedterms
v in our Memorandum to you on issuesfacedby bank customersdated 18 March
2077.
YoursTruly,
b-r^[-
SuchetaDalal DebashisBasu :
Founder-Trustee Founder-Trustee
MoneylifeFoundation MoneylifeFoundation
Encl:
1. ExecutiveSummaryfrom the Dr JanakRajInternalStudy Group of RBI
2. Article in BusinessStandard:"Home Loan Loot: WhoseSide is the RBI On?,'by
Debashis Basu
3. Article in BusinessStandard: "The deceit and Loot in Home Loans,,by
DebashisBasu
4. Article in Business Standard: "How opaque MCLR allows looting of
borrowers" by DebashisBasu
5. Article in Moneylife: "BanksAre FleecingTheir Customers"by SuchetaDalal
6. Article in Moneylife: "BorrowersBeware:Your Bank May Be Ripping You O{f"
Moheylife Foundation: 305,3.! Floot Hind Service tndu3rriesprcmises,OffVecr Savarkart4arg,Shivajipark, Page2 of3
Dadar (VO, Mumbai 400028.Tet:022-492O5OOO (Board Frx 022-49205022
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InoneylEfe
Eririn-Erirriri
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by SuchetaDalal
7. Moneylife magazine.Cover Story: ,,your Friendly Bankster,,Issue292
CC:
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liloneylift Foundationt 305,3d Flooi Hind Service Indusries premises,Off.Vecr SavarkarMar8,Shivajipark Page3 of3
Dadar (Vy'),Mumbai 400028.Gt O22.492OSOOO (Board) F,xO22492oso22