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        FEMA & RBI

        RBI invites comments on the draft circular on ‘Responsible Lending Conduct – Levy of Foreclosure Charges/ Pre-payment Penalties on Loans’

        February 22, 2025

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        In pursuance of the announcement made in the Statement on Developmental and Regulatory Policies dated October 09, 2024 regarding the review of extant regulatory guidelines on levy of foreclosure charges/ pre-payment penalties on loans, Reserve Bank has released today the draft circular in this regard.

        Comments/feedback by the stakeholders and members of public on the draft circular may be submitted by March 21, 2025 through e-mail. Final circular shall be issued after considering the stakeholder/ public comments.

        (Puneet Pancholy)  
        Chief General Manager

        Responsible lending conduct: public consultation opened on levy of foreclosure and pre-payment penalties on loans. The Reserve Bank has released a draft circular reviewing the levy of foreclosure charges and pre payment penalties on loans under its Responsible Lending Conduct initiative and invites stakeholders and the public to submit comments by the stated deadline; a final circular will be issued after considering feedback.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Responsible lending conduct: public consultation opened on levy of foreclosure and pre-payment penalties on loans.

                                The Reserve Bank has released a draft circular reviewing the levy of foreclosure charges and pre payment penalties on loans under its Responsible Lending Conduct initiative and invites stakeholders and the public to submit comments by the stated deadline; a final circular will be issued after considering feedback.


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