Legal Question in Banking Law in India

Deposited a Fixed Deposit with PSU Bank in May 2014 for 5 yrs. The interest rate was 9.75%. RBI regulation was there that NRE fixed rate cant be higher than domestic fixed interest rates. After 17 months I received intimation that fixed rate is revised to 9% stating rbi guidelines.
When I enquire, the bank is stating that my fixed deposit rate was revised in jul�14 and it was communicated now.
Kindly give me ur opinion:
1) I had better interest rates in other bank with 9.5% interest rate and I missed it. Can I claim for the loss?
2) if they had intimated in Jul�14, still I had option of switching my fd to other banks. I missed that run and they are informing only now.
Rbi guidelines was effective from 1st mar 2014, which they didn�t follow and also they didn�t inform at the time of revision. Can I sue the bank?

Asked on 9/02/15, 10:20 am

Fca Prashant Chavan Expert Edge LLP

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03.09.2015

Dear Sir / Madam,

Yes, the Bank remains legally liable to compensate you for the losses incurred by you for their lapses.

Regards,

Answered on 9/03/15, 4:16 am

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