RBI's latest guidelines stop banks from charging penal rates on loan defaults, aiming to protect borrowers. A significant shift in banking norms!
Source: Economic Times
Now, banks can't charge extra for delayed EMI payments or add hidden interest components. A fairer approach to lending and borrowing!
Source: Economic Times
The RBI aims to promote credit discipline, not income enhancement for banks. These changes come after finding misuse of penalty charges.
Source: Source: Economic Times
Understanding the difference: Penal charges are fixed fees, while penal interest adds to your loan's interest rate. RBI seeks clarity and fairness.
Source: Source: Economic Times
New loan guidelines are effective from April 1. Existing loans will follow from June 1, 2024. A gradual transition to better banking practices.
Source: Source: Economic Times
Both retail and corporate borrowers face equal penalty charges for similar loans. RBI emphasizes uniformity and non-discrimination in penalties.
Source: Source: Economic Times