Penal charges in loan accounts: RBI gives 3 more months to banks, NBFCs to implement modified norms
Mumbai, Dec 29 (PTI) The Reserve Bank on Friday granted three more months up till April 1, 2024 to banks and NBFCs to implement the modified norms for levying penal charges in loan accounts, as part of fair lending practice.
In August, the central bank issued a circular on ‘Fair Lending Practice – Penal Charges in Loan Accounts’ and it was to come into effect from January 1, 2024.
“However, considering that certain clarifications and additional time has been sought by some regulated entities (REs) to reconfigure their internal systems and operationalize the circular, it has been decided to extend the timeline for implementation of the instructions by three months,” the RBI said.
