Mulraj Jayantilal Sheth v. Governor Reserve Bank of India Bombay and Another

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2003 Supreme(Online)(Bom) 13

BOMBAY HIGH COURT
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Mulraj Jayantilal Sheth v. Governor Reserve Bank of India Bombay and Another

Advocates:
For the Appellants/Petitioners: M. B. Kotak
For the Respondents: None mentioned

Table of Content
1. petitioner's prayers focus on interest rates for senior citizens. (Para 1 , 2)
2. arguments presented emphasize public duty of banks. (Para 3)
3. rbi's banking policy requires judicial respect and rational basis. (Para 4 , 8 , 10)
4. court examines the domain of judicial intervention on banking decisions. (Para 5 , 6)
5. writ petition disposed, reiterating legislative and executive responsibilities. (Para 11 , 12)

1.The petitioner is a senior citizen. In this writ petition his prayer is for issuance of writ of mandamus or order or direction to the Reserve Bank of India (RBI) and Government of India to ensure that the banks revise their paltry 4% or 4.5% interest rates and pay at least 12% interest on the deposits. The petitioner also prays that the said respondents be refrained from penalising the deposits when they cannot maintain bank's self - determined minimum balance. The aforesaid prayers are sought in view that RBI is regulatory authority for the banks under S. 35 - A of the Banking Regulation Act, 1949 and it has authority to decide interest rates and banking policy in the interest of public and depositors.

2. Mr. M. B. Kotak, the learned counsel for the peti