Unilateral reduction of contracted interest rate on FDRs by bank is impermissible

Nem Kumar Jain And Another Vs Union of India (Allahabad High Court) Allahabad High Court held that bank not permitted to unilaterally reduce interest rates on Fixed Deposit Receipt [FDR] after issuance of the FDRs. Accordingly, these petitions are allowed and bank is directed to compute interest on FDRs at originally contracted rates. Facts- By means of both these writ petitions, filed under Article 226 of the Constitution, the petitioners have sought substantially similar reliefs. The principal prayer is for a writ of mandamus directing the respondents to compute and pay interest on the resp...