<h1>RBI Directive: NBFCs Prohibited from Charging Foreclosure Fees on Floating Rate Loans to Individuals.</h1> The Reserve Bank of India (RBI) has mandated that Non-Banking Financial Companies (NBFCs) must not impose foreclosure charges or pre-payment penalties on floating rate term loans granted to individual borrowers. This directive, effective immediately, aims to protect customers and standardize loan pre-payment practices across banks and NBFCs. As of now, the RBI has not received any reports of non-compliance from NBFCs regarding this directive. This information was disclosed by the Minister of State for Finance in a written response to a question in the Lok Sabha.