Reserve Bank on Tuesday came down heavily on banks which took refuge in technicalities of contract to  unreasonably jack-up monthly installments of home loans.

"It is not appropriate for a bank, which is a trusted institution to use technical provisions with the customer to enhance monthly installments unreasonably," RBI Governor Y V Reddy said at the customary post-monetary policy press conference.

The matter attracted attention of the apex bank after it received several complaints in this regard.

"A number of complaints have been received and we have asked banks to internally look at it. We may also have to ensure that we create certain rights for the customers if there is an unfair one-sided contract," he said.

"Banks are obliged to explain and justify the revision in interest rates and also correspondingly ensure that there is a symmetrical provision for a rollback if the interest rates come down," he pointed out.

In the absence of global benchmark, some banks who have floating rates have pegged it on to a rate determined by themselves.

Also, there were some provisions in the fixed rate contract under certain circumstances to change the rate apart from provision to extend the maturity while keeping the monthly installments constant, Reddy observed.

The Monetary and Credit Policy 2007-2008