RBI stops NBFCs from charging penalties on loan pre-payment
PrintListen to this Article
The Reserve Bank of India has asked non-banking finance companies to not charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect.
In May, the central bank had issued a similar directive to banks as a measure of customer protection.
The latest RBI directive is aimed bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs.
It is in the interest of their consumers, banks and NBFCs should allow their borrowers the possibility of prepaying floating rate term loans without any penalty. (PTI - NDTV)
Category : RBI | Comments : 0 | Hits : 589
The Supreme Court on Friday set aside the rejection of an IRS officer’s candidature for appointment as a member of the Income Tax Appellate Tribunal (ITAT), ruling that the involvement of the th...
The Reserve Bank of India (RBI) on Friday unveiled a set of liquidity-boosting measures aimed at infusing more than $23 billion (around ₹2 lakh crore) into the banking system, after review...
RBI has issued draft rules to tighten dividend payouts by banks by linking distributions to capital adequacy, asset and profit quality, setting a uniform prudential framework effective from FY27. In t...
Comments