Letter to Subrata Das DGM, RBI

8th January 2008..

Subrata Das,
Deputy General Manager,
Department of Banking Operations & Development,
Reserve Bank of India,
12th Floor, Central Office Building,
Shahid Bhagat Singh Road, Fort,
Mumbai 400001


Sub: Your Letter bearing reference number DBOD.No.Leg. 8272 /09.07.007/2007-08

Dear Sir,

As usual, your reply to our letter is vague and does not answer any questions that we raised in our letter dated 31st October 2007.

Our main concern is that banks and NBFC’s that are supposed to be under your control are charging usurious rates of interest. You have stated that they should not be doing so.

Can you please clarify as to what rate of interest you assume to be non-usurious? And what rate of interest is usurious ?

We have cases where banks have charged up to 75% p.a. as interest. How come private money lenders have a law that prohibits them from unsecured lending at more than 15% p.a. while banks and NBFC’s such as CitiFinancial, Prime Financial, GE Money etc are charging rates anywhere between 45% to 75% per annum?

What is the RBI doing about such flagrant violation and exploitation of common Indian people?

We look forward to an early reply from your office.

Thanking you,
Yours sincerely,
For Credit Consumers Association of India



Vijay Kamble
(President)


Cc: Mr. Y.V. Reddy, Governor RBI