RBI Update - Fair Lending Practice - Penal Charges in Loan Accounts: Extension of Timeline for Implementation of Instructions

It has been decided to extend the timeline for implementation of the instructions by three months. Accordingly, Regulated entities (REs) shall ensure that the instructions are implemented in respect of all the fresh loans availed from April 1, 2024 onwards. In the case of existing loans, the switchover to the new penal charges regime shall be ensured on the next review/ renewal date falling on or after April 1, 2024, but not later than June 30, 2024.Link - View Circular