The chapter tackles interest rate adjustments by commercial banks and their effects, both legal and financial, on individuals and firms. It tries to answer the scope of the bank’s power regarding interest rate modifications and analyzes the implications emerging out of it by reviewing the set-up laws and regulations governing such actions. The specific objective is to determine how interest rate adjustments impact loans, deposits, and other related variables. This chapter finds that banks have a significant amount of discretionary powers in adjusting interest rates; hence, there has to be a proper legal mechanism in place protecting depositor’s interests (customer’s rights) and ensuring financial stability. It also shows that borrowing costs and savings rates are directly influenced by interest rate adjustments, which have implications for individual and corporate financial decisions. According to the findings, the study recommends a policy and procedural framework for transparency in interest rate adjustment processes and increased statutory regulation to strike an equilibrium between the interests of banks and those of customers.