Bank Savings: Writ petition challenges slash of interest rate

A Supreme Court lawyer yesterday filed a writ petition with the HC challenging the legality of the government move to reduce bank savings' interest rate to a single digit.

Advocate Eunus Ali Akond submitted the petition as a public interest litigation, seeking a stay from the HC on the government decision and to direct the government to increase depositors' profits.

In the petition, he said the finance minister has reportedly spoken of reducing the interest rate of all savings -- including postal savings. If this is carried out, people's profits will be reduced, Advocate Eunus Ali said.

In a discriminatory move, the government has reportedly decided to reduce interest rates on postal savings while keeping pension interests intact, the lawyer said in the petition.

However, the Public Debt Act, 1944 has not empowered the government to reduce the interest rate in this way. This means the government decision contradicts the constitution, Eunus Ali said in the petition.

The HC may hold a hearing on the writ petition next Sunday, the lawyer told The Daily Star.