Court orders bank to pay higher interest after cutting FD rate from 7.75% to 3.5%

A bank reduced the interest rate on a fixed deposit from 7.75% to 3.5% in January 2018. The depositor, holding an FD worth Rs 5.89 crore, challenged this unilateral reduction in court. The depositor argued the bank provided no valid justification for the significant rate cut. A court has now ruled in the depositor's favor, ordering the bank to pay a higher interest rate.