Team Blitz India
NEW DELHI: The Reserve Bank of India (RBI) directed regulated entities to review their lending practices in line with fair practice code. This was after it found that some lenders are resorting to certain unfair practices in charging interest rates, a statement issued by the regulator said.
The RBI said that during the onsite inspection for March 2023 of regulated entities, the RBI came across instances of unfair practice by some lenders regarding charging interest rates.
The regulator pointed out that some lenders charged interest on loans from the date of sanctioning or execution of the loan agreement rather than from the date of disbursement.
RBI also noted that there were cases where loans were disbursed by cheque, and lenders charged interest from the cheque date, whereas the cheque was handed over to the customer several days later.
