Date: 28-05-2012 by
email and post
Chief
General Manager
Reserve Bank
of India
Customer
Service Dept, Central Office,
1st
Floor, Amar Bldg,
Mumbai 400 001
Respected Sir,
Subject: Interest Rate Calculation by Banks
At present
whenever banks calculate interest rate based on scoring chart [rating model], banks
do not provide copy of scoring chart to borrowers. Usually junior officers work
out the chart and fix rate of interest as per circular received from H.O.
Normally borrowers do not ask for copy of scoring chart which may affect their
relations with bank officers. Whenever borrowers ask for copy of scoring chart,
bank managers avoid giving the same branding it as internal matter of bank,
though it is accessible to borrowers under Right to Information Act 2005. Thus borrowers
are kept in dark on vital issue of fixing rate of interest on working capital
accounts or loans etc.
I humbly
suggest that RBI should direct banks to supply copy of scoring chart with
intimation of rate of interest whenever it is fixed/revised, with link of H.O.
circular on interest rates on website of the bank, so that borrower knows how
rate is arrived at and can even represent to the bank, if there is discrepancy
in scoring chart.
This
suggestion, if implemented, will ensure transparency in bank operations and
borrowers will know how he can improve his ratings so that lower rate of
interest is charged in future. Borrowers will also be in a position to point
out errors of bank officers in scoring pattern if any.
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