https://www.taxtmi.com/news?id=48310 The Reserve Bank mandates that regulated entities shall not levy any pre-payment charges on all floating-rate loans and advances to individuals and micro and small enterprises, including business-purpose loans, for loans sanctioned or renewed on or after January 1, 2026. The prohibition applies irrespective of the source of pre-payment funds and without any minimum lock-in period. Specific categories of banks and NBFCs are subject to tailored limits on when charges are barred, cash credit and overdraft facilities are exempted from charges if prior non-renewal notice is given and the facility is closed on the due date, and the applicability of any pre-payment charges must be disclosed in the sanction letter and loan agreement. en-us Wed, 02 Jul 2025 22:46:03 +0530 Wed, 02 Jul 2025 22:46:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=48310 The Reserve Bank mandates that regulated entities shall not levy any pre-payment charges on all floating-rate loans and advances to individuals and micro and small enterprises, including business-purpose loans, for loans sanctioned or renewed on or after January 1, 2026. The prohibition applies irrespective of the source of pre-payment funds and without any minimum lock-in period. Specific categories of banks and NBFCs are subject to tailored limits on when charges are barred, cash credit and overdraft facilities are exempted from charges if prior non-renewal notice is given and the facility is closed on the due date, and the applicability of any pre-payment charges must be disclosed in the sanction letter and loan agreement. News - Wed, 02 Jul 2025 22:46:03 +0530 https://www.taxtmi.com/news?id=48310