After directing the commercial banks and move
by NHBs, RBI has asked Regional Rural Banks (RRBs) to remove any pre-payment
penalty on home loans.
"It
has, therefore, been decided that Regional Rural Banks will not be permitted to
charge foreclosure charges or pre-payment penalties on home loans on floating
interest rate basis, with immediate effect," RBI said in a notification.
This step will help in spreading a uniform
banking system across the sector and reducing discrimination between new and
existing borrowers.
This move is a consequence of Banking
Ombudsmen Conference which was held last year. There the consensus suggested
that the banks should not impose foreclosure charges on home loans with floating
interest rate.
“Not to permit” banks to levy charges has
been proposed by RBI in the annual monetary policy 2012-13 for home loan
segment.
1 comment:
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