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RBI Asks Lenders To Be Fair On Charging Of Interest From Borrowers
The New Indian Express
|April 30, 2024
ON the heels of the notifying the key facts statement on loan pricing earlier this month to be implemented from October 1, the Reserve Bank on Monday issued a fair practices code for lenders on charging of interest from borrowers.
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Guidelines on fair practices code has been issued to various types of lenders or regulated entities since 2003 to being about fairness and transparency in charging of interest, even as providing freedom to them to price their loans. The regulator said the new guidelines are effective immediately and are applicable to all lenders expect payments banks.stances were observed where interest was charged from the date of the cheque whereas the cheque was handed over to the customer several days later.
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