The Reserve Bank of India (RBI) issued a notification prohibiting banks and regulated entities from charging additional fees throughout the loan term not mentioned in the Key Fact Statement (KFS) without borrower consent. Effective October 1, all new retail and MSME term loans must strictly adhere to KFS guidelines, including fresh loans to existing customers. The KFS encompasses essential details like the Annual Percentage Rate (APR) to provide borrowers with transparent information. This mandate follows the RBI’s February decision, ensuring borrowers receive comprehensive loan details, including APR and grievance redress mechanisms.
RBI Bars Banks from Imposing Additional Fees Without Borrower Consent
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/04/16112852/1712170537-0185-ezgif.com-webp-to-jpg-converter.jpg)