https://www.taxtmi.com/caselaws?id=109640 A borrower's complaint that a bank arbitrarily assigned a poor credit rating, leading to a higher interest charge on a cash credit account, can fall within the Banking Ombudsman's limited jurisdiction under the Banking Ombudsman Scheme, 1995. The Ombudsman may examine whether the rating and resulting interest treatment involved non-observance of Reserve Bank directives on interest rates, but may not substitute his own credit appraisal for the bank's commercial judgment. The review is confined to whether the rating, on the borrower's repayment record and relevant material, was so unreasonable that no prudent banker would have adopted it. en-us Tue, 22 Jul 2003 00:00:00 +0530 Wed, 11 Apr 2012 11:38:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109640 A borrower's complaint that a bank arbitrarily assigned a poor credit rating, leading to a higher interest charge on a cash credit account, can fall within the Banking Ombudsman's limited jurisdiction under the Banking Ombudsman Scheme, 1995. The Ombudsman may examine whether the rating and resulting interest treatment involved non-observance of Reserve Bank directives on interest rates, but may not substitute his own credit appraisal for the bank's commercial judgment. The review is confined to whether the rating, on the borrower's repayment record and relevant material, was so unreasonable that no prudent banker would have adopted it. Case-Laws Companies Law Tue, 22 Jul 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109640