Brief by Shorts91 Newsdesk / 06:28am on 30 Apr 2024,Tuesday India
The Reserve Bank of India (RBI) issues a directive to cease unfair interest rate practices in the lending sector. Following onsite examinations revealing unethical practices burdening borrowers with excessive charges, RBI mandates immediate cessation and corrective actions by regulated entities. Lenders are instructed to review loan disbursal procedures, interest calculations, and refund excess charges to affected customers. Emphasizing fairness and transparency, RBI encourages online account transfers for loan disbursals to streamline processes and mitigate risks associated with cheque issuance. The move aims to safeguard borrowers and promote integrity in the lending ecosystem.
