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

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