New Delhi: In recent years, some banks have been following a practice where the interest on a loan starts accumulating before the loan amount is deposited into the customer’s account. This occurs when the loan is sanctioned, and interest is charged, but the cheque is given to the customer at a later date. This unfair trend has led the Reserve Bank of India (RBI) to implement strict measures to protect customers.
The RBI has now regulated banks, non-banking financial companies (NBFCs), and housing finance companies to sanction and deposit the loan amount into the customer’s account on the same day. This means that interest should only begin accumulating when the customer receives the loan amount, not before.
Know your rights
Customers should be informed about these new policies and the terms and conditions associated with their loans. Customers must understand when their loan interest will start and ensure that it aligns with when they receive the loan amount.
Banks must regularly check their systems to ensure no extra interest is charged before the loan amount is deposited into the customer’s account. This will help maintain transparency and fairness in the loan process.
Grievance redressal mechanism
In case of any unfair charges or practices that are detected by the borrower, take the following steps:
If a customer finds any discrepancies or believes that extra interest has been charged, they should first contact their bank. The bank is responsible for resolving the query within 30 days.
If the bank fails to resolve the issue within the specified time, the customer can then escalate the matter to the RBI for further action.
By implementing these measures, the RBI aims to ensure fair practices in the loan sanctioning process and protect customers from unfair interest charges. Customers are encouraged to stay informed about their rights and the terms of their loans to avoid any undue financial burden.
The RBI has directed banks, NBFCs, and Housing Finance Companies to deposit loan amounts on the same day as sanctioning, ensuring interest starts only from that date. Customers should verify loan terms, stay informed about these changes, and report any discrepancies to avoid unfair interest charges. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
