Deposits you can bank on

Caveat Emptor

 Interest rates on bank deposits are fixed by the Reserve Bank of India and every bank must follow its directives. The rate of interest is raised or reduced from time to time depending on market conditions.

 But does such fluctuation also affect the bank deposits received on certain representations and promises made to the depositors? This important question came up recently for adjudication before the Madhya Pradesh State Consumer Disputes Redressal Commission.

 Kailash Prasad Tiwari had, on October 28, 1992, deposited Rs 150,000 with the District Cooperative Central Bank Ltd., Shahdol (Madhya Pradesh) for a period of 63 months on the basis of the bank