RBI allows customers to pre-pay floating rate loans without fine
As per the RBI the consumers are allowed to pre-pay floating rate term loans without any fine. The RBI concluded that bank should not take undue advantage of customer difficulty.
Instead of charging for non-maintenance of minimum balance in ordinary savings bank accounts the bank should limit the services available on such accounts to those available to Basic Savings Bank Deposit Accounts and restore the services when the balances improve to the minimum required level.
RBI concluded that bank is not imposing the penal charges of minimum balances in any inoperative account.
Moreover the bank should not limit the liability of customers in electronic banking transactions in case where they are not able to prove customer carelessness.
Showing this the consumer protection is a vital part of financial inclusion. The Reserve Bank concluded that it proposes to frame comprehensive consumer protection regulations based on domestic experience and global best practices.
Source: The Business Line
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