EMI or Tenure Not Adjusted After RBI Rate Cut
RBI has cut the repo rate, but your bank has not passed on the benefit by reducing your EMI or loan tenure on your floating rate loan. Your loan is linked to MCLR or EBLR and should have automatically adjusted.
⚖️Your Rights Under RBI Regulations
Loans linked to External Benchmark (repo rate) must be reset at least once every 3 months — the rate change is automatic.
For MCLR-linked loans, resets happen on the anniversary date. Your bank must inform you of the new rate.
You can request a switch from MCLR to repo-rate linked loan — banks cannot refuse, though they may charge a nominal fee.
Banks must be transparent about the reset mechanism and inform you when rate changes take effect.
💰 What You Can Recover
Refund of excess interest paid due to delayed reset from the date the rate should have changed.
⏱ Response Deadline
30 days for written complaint response.
📋Step-by-Step — What to Do
Check your loan agreement for the benchmark (MCLR or EBLR) and reset frequency.
Calculate the expected rate based on RBI's current repo rate / MCLR published by your bank.
Write to the bank with your calculation requesting explanation of why your rate hasn't adjusted.
File with RBI Ombudsman if the bank cannot justify the rate differential.
🏛 Where to Escalate If Bank Doesn't Respond
RBI Integrated Ombudsman — cms.rbi.org.in
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