RBI New Guideline On EMI: Taking an important step, the Reserve Bank of India has implemented new guidelines regarding penalty charges on loans from September 1, 2024. Under this new rule, banks and non-banking financial companies (NBFCs) will no longer be able to levy penalty charges arbitrarily. This rule has brought great relief to the common people.
Important step in the interest of customers
This new rule has been made keeping in mind the safety of the customers. Its main goal is that financial institutions do not charge unfair fees from their customers. RBI believes that a transparent system will increase the confidence of customers in the banking sector and they will be saved from unnecessary financial burden.
New system of proper default charge
According to the new rules, now only that amount can be taken as penalty which is actually delayed in payment. That is, if someone has paid some part of his EMI and some is left, then penalty will be imposed only on the remaining amount. This system is quite different from earlier, when many times penalty was imposed on the entire loan amount.
Strict eye on those who deliberately default
However, this exemption is not for those who deliberately do not repay the loan. To identify such people, Indian Banks Association and National e-Governance Service Limited are jointly developing a special system. This will enable strict action against fraudsters.
Special attention on big borrowers
Statistics show that the highest defaults occur in loans between Rs 10 to 100 crores. With the new system, these big borrowers can also be monitored and timely action can be taken. This will also help banks in their recovery.
Important precautions for customers
Despite the new rules, loan takers should take special care of some things. Paying EMI on time is the most important. If there is a problem of money in any month, then you should immediately talk to the bank. While taking a loan, all the terms and conditions should be understood well and more loan should not be taken than required.
Hope for improvement in the financial sector
This new initiative of RBI will bring a big improvement in the financial sector. This will increase transparency in banks and NBFCs and protect customers from unfair charges. Also, this step will also promote financial discipline.
Impact on society
The biggest benefit of this rule will be to the middle class and small borrowers. Now they will get relief from the burden of unnecessary penalty. This will increase people’s trust in the banking system and they will be able to avail financial services without fear.
Future challenges and prospects
For the successful implementation of the new rules, banks and NBFCs will have to change their systems. Also, customers will have to be aware of their rights and responsibilities. This change can start a new era in the Indian banking sector.
