BIG! Banks Can’t Levy Penal Interest Now, Check RBI’s Latest Guidelines For Banks, NBFCs – Top Speed News
Concerned over the practice of banks and non-banking financial companies (NBFCs) using penal interest as a revenue enhancement tool, the Reserve Bank of India (RBI) on Friday came out with modified norms, under which lenders would be able to levy only “reasonable” penal charges in case of default in repayment of loans. It said banks…