SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 08 Jun, 2024  

RBI.9.Thmb.jpg RBI Governor warns banks, NBFCs over slapping extra fees on customers

   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
IANS | 08 Jun, 2024

RBI Governor Shaktikanta Das on Friday sent a clear message to banks and NBFCs against charging extra fees and high interest rates on loans to customers.

“In general, we have observed that guidelines on Key Facts Statement are followed, but a few banks and NBFCs still charge fees, etc. that are not specified or disclosed in the statement,” Das said at a press conference after the monetary policy committee meeting.

“It has also been observed in some micro-finance institutions and NBFCs that the interest rates on small-value loans are high and appear to be usurious,” the RBI Governor pointed out.

The regulatory freedom enjoyed by banks and NBFCs in respect of interest rates and charges should be used judiciously to ensure fair and transparent pricing of products and services. The Reserve Bank continues its constructive engagements with such financial entities to safeguard the interest of customers and ensure overall financial stability, he added.

Das also said that in November last year, the RBI had flagged certain concerns on excessive growth in the unsecured retail loans and over-reliance of NBFCs on bank funding. Recent data suggests that there is some moderation in these loans and advances, he added.

“We are closely monitoring the incoming data to ascertain if further measures are necessary. The Boards and top management of banks and NBFCs should ensure that risk limits and exposures for each line of business are kept well within their respective risk appetite framework,” he said.

The RBI Governor also observed that the persisting gap between credit and deposit growth rates warrants a rethink by the Boards of banks to re-strategise their business plans.

A prudent balance between assets and liabilities has to be maintained,” he added.


Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter