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.
--IANS