RBI lending directive

RBI lending directive: No more pre-payment charges; borrowers to get freedom from 2026 | India Business News – Times of India

July 3, 2025 0

In a move to enhance transparency and borrower flexibility, the Reserve Bank of India (RBI) has barred banks and other regulated lenders from imposing pre-payment charges on floating rate loans availed by individuals for non-business purposes. The new norms, issued under the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, will be applicable to all loans and advances …