Bank cannot unilaterally reduce interest rate agreed in a fixed deposit during its tenure

Smt. Sarojni Jain And Another Vs Union of India And 2 Others (Allahabad High Court) The Allahabad High Court allowed the writ petition challenging the unilateral reduction of interest on a Fixed Deposit Receipt (FDR) by the respondent bank during the subsistence of the deposit. The material facts between the parties were not in dispute. The petitioners, being the daughter and wife of a deceased retired bank employee, jointly deposited ₹50,000 on 16 December 2011 in an FDR with the erstwhile Oriental Bank of Commerce. The FDR carried a fixed interest rate of 10.75% per annum for a period of t...