NEW DELHI: The Supreme Court asked the Reserve Bank of India on Monday to break its 10-month silence and reveal its decision on complaints that banks do not reduce floating interest rates on existing loans for buying homes, vehicles or consumer durables proportionate to its repo rate cuts (rate at which RBI lends money to banks).Petitioner ‘MoneyLife Foundation’ told the court that it wrote to RBI last October complaining “whenever the interest rate goes down, new borrowers are offered a lower interest rate with respect to similar small loans in the fields of housing, education and consumer goods, against principles of natural justice and equity. There is minimal or often no reduction in interest rates of old borrowers”.MoneyLife Foundation, in its letter to RBI, had said, “There is minimal or often no reduction in interest rates for old borrowers.” Senior advocate Shyam Divan said, “Effectively, banks are charging one set of borrowers a rate of interest which is different for similarly placed earlier borrowers. This is gross discrimination and unfair banking practice.” The petitioner said according to its estimation “the wrongful loss to consumers/borrowers is well in excess of Rs 10,000 crore for denial of every 1% of the benefit (reduction in floating interest rate).”Divan said RBI had on December 26 last year informed the petitioner that issues raised by it were under consideration of the banking regulator. However, till date the decision remains a secret, he said. The petition, filed through advocate Jatin Zaveri, alleged that “there is tremendous opacity in the floating interest rates calculated by banks in respect of their customers. At a given time, there is a huge disparity in the interest being charged from old and new customers.”The CJI-led bench, in its order disposing of the petition, said, “The Reserve Bench of India, by letter dated December 26, 2017, has informed the petitioners that the issues raised in their letter dated October 12, 2017 is under consideration. According to the petitioners, it has not been informed of the result of such consideration, leaving them with no option but to approach this court.” The bench added, “Having heard the counsel for the petitioner and having considered the matter, we are of the view that, at this stage, RBI should be directed to communicate its decision in the matter covered by the October 12, 2017 representation/letter to the petitioners within six weeks. Thereafter the petitioners, if still aggrieved, will be at liberty to approach this court once again.”