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11:43 AMRBI to banks: Can't charge extra without mention in key fact statement
The Reserve Bank of India (RBI) on Monday issued a directive that prohibits banks and other regulated entities from levying additional fees on loans that are not previously disclosed in the Key Fact Statement (KFS). The notification stipulates strict adherence to these guidelines for all new retail and MSME term loans sanctioned from October 1 onwards, including loans issued to existing customers.
“Any fees, charges, etc., which are not mentioned in the KFS, cannot be charged by the REs to the borrower at any stage during the term of the loan, without explicit consent of the borrower,” the regulator said. Read more
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