Yes Bank — NRE FD interest - bank reduces rate 3 months after booking!

Hello,

I booked 4 NRE-FD with Yes Bank (cust ID 2095621) during Sept/Oct 2023 for a tenure of 2-3 years @ 7.75% interest arte. The FDs were booked online and there was no issue. On 30th Dec-2023, the bank sends an email that their system was not updated reflecting a downwards revised interest rate of 7.25% and hence claims that they will need to reduce the interest rate to 7.25% resulting in a loss to me. The quote some RBI mandate, etc.

It is very strange that the bank can do such a think, make an error (as they say) and penalise the innocent customer! Does the RBI have no regulation to penalise such a bank and reward the customer? Why should I be slapped a penalty of lower rate after 3 months for something that the bank mis represented in the first place??

I have already raised the issue with the bank, but today, i.e. 31st Dec, the bank has already sent me the revised FDs with the lower 7.25% rate!

On another note, is there any concern with Yes Bank as it had been some 3-4 years back??

Attaching a copy of the bank's email. Please help.

Thanks
Amit