BREAKING NEWS
NATIONAL - WITH ELECTION-DATES ANNOUNCED FOR STATE-ASSEMBLIES OF HARYANA AND MAHARASHTRA
NATIONAL - PM MODI SLAMS PAKISTAN AT HOWDY MODI EVENT
NATIONAL - ARMY AIR DEFENCE 6TH ARMY AD REUNION : GOPALPUR
LOW PRESSURE LIKELY TO TRIGGER HEAVY RAINFALL:BeMC WITH ALL SET TO MEET CHALLANGES
JSPL'S TRB IRON ORE MINES BAGS MINING INNOVATION AWARD
CRIME - CHILD LIFTING GANG BUSTED IN BERHAMPUR
ASK FOR ANUBHABA ODIA MONHLY NEWS MAGAZINE
ABOLITION OF FORECLOSURE-CHARGES ON PRE-PAYMENT OF LOANS STILL INCOMPLETE EVEN AFTER TEN YEARS OF RBI ADMITTING ITS NOT APPROVING POLICY OF FORECLOSURE CHARGES

ABOLITION OF FORECLOSURE-CHARGES ON PRE-PAYMENT OF LOANS STILL INCOMPLETE EVEN AFTER TEN YEARS OF RBI ADMITTING ITS NOT APPROVING POLICY OF FORECLOSURE CHARGES Featured

Report;Bureau,Odishabarta

New Delhi,07/09/19:Reserve Bank of India (RBI) has once again issued circular dated 02.08.2019 clarifying that banks shall not charge foreclosure charges or pre-payment penalties on any floating-rate term-loan sanctioned for purposes other than business to individual borrowers with or without co-obligant(s). Earlier about a decade back, RBI in an RTI response dated 03.09.2009 had clearly stated that RBI does not approve policy of charging penalty or foreclosure charges. 

In this period of ten years, RBI had waived concept of foreclosure-charges in a phased manner rather than totally like starting from such waiver only for home-loans. But even the latest circular dated 02.08.2019 has not completely met with RBI policy of not approving foreclosure-charges as revealed in ten-years old RTI response dated 03.09.2009. Latest circular dated 02.08.2019 is applicable only in respect of banks that too not in respect of business-loans. In continuation of RBI policy of giving undue favours to Non-Banking-Financial-Companies NBFC, latest circular dated 02.08.2019 is not applicable on NBFCs. 

RBI must stick to its ten-year old stand of not approving basic concept of foreclosure charges since such an anti-public concept deprives people of getting rid of being loan-burdened. RBI should issue a fresh unconditional circular abolishing basic concept of foreclosure-charges even for business-loans and NBFCs for all types of loans.

 

 

 

#Input;Subash Agarwal

 

Read 182 times Last modified on Saturday, 07 September 2019 04:31
Rate this item
(0 votes)

About Author

Visitor Counter

Today 321

All 131411556

Currently are 170 guests and no members online

X

Right Click

No right click