new Delhi: Reserve Bank of India (RBI) Asked all banks and NBFCs (non-banking financial company) to close the penalties on the pre-closure of the floating rate loan or on the advance closing. The Reserve Bank told all the banks that if a term loan is not a business loan, the lender wants to repay it before the scheduled time, then the penalty imposed on the present will not be charged.
Floating rate loan is a loan in which the rate of interest is not fixed. It is market-based. EMI is also not fixed due to non-interest rate fixation.
The finance ministry has applied for this post in the RBI, more than 2 lakh salary
Earlier, in May 2014, the Reserve Bank had banned penalties on advance payments on mortgage loans. However, this was its provision on non secured lone (personal loan). Under the order of August 2019, the Reserve Bank has banned the penalty on advance payment for all loans, except for business loans.