Opaque Practices traced on pricing of Home Loans in India
No Comments Sub Category:Uncategorized Posted On: Nov 05, 2011
Reserve Bank of India (RBI) recently had set up a committee to taken initiative of ensuring proper flow of finance in India. This was also aimed to ensure transparent and non-discriminatory pricing of credit. Meanwhile the Deputy Governor of Reserve Bank of India, K C Chakrabarty reported saying that the housing finance companies and the banking sectors were traced to be following opaque practices on pricing of loans. He added on saying that the banks can no more cheat them as the mandatory norm will be passed on and the banks which do not follow the same is sure to run under loss.
Banks in India have also tried to give the best financial support to its customers but none of them seem to have given fruit neither to the banking sectors or to the loan borrowers. Henceforth RBI do not want to face financial risks in future. Chakrabarty also said that, they have appointed a pricing committee to strengthen their corporate governance. Waiving prepayment penalty on floating home loans will also be mentored by the regulator.
Source: Business Standard
Tags:
Banking sectors, Banks in India, Finance in India, Floating home loans, Housing finance companies, Loan Borrowers, Prepayment penalty, RBI, Reserve Bank of India
