The
Reserve Bank of India (RBI) does not propose to restrict foreclosure charges
charged by the Non-Banking Financial Companies (NBFCs) on pre-payment of loans
to a maximum of three percent at present. RBI has issued a circular dated 14th
July, 2014 to all Non-Banking Financial Companies/Residuary Non-Banking
Companies with regard to levy of foreclosure charges/pre-payment penalty on
Floating Rate Loans, as a measure of customer protection and also in order to
bring in uniformity with regard to pre-payment of various loans by borrowers of
banks and NBFCs, stipulating that NBFCs shall not charge foreclosure
charges/prepayment penalties on all floating rate term loans sanctioned to
individual borrowers, with immediate effect. The RBI has not received any such
data till date regarding NBFCs non-compliance of the directions issued recently
on 14.7.2014 on levy of foreclosure charges/pre-payment penalty on floating
rate loans.
This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.
0 comments:
Post a Comment