A few REs still charge fees, etc. that are not specified or disclosed in the Key Facts Statement (KFS)
FinTech BizNews Service
Mumbai, June 7, 2024:
Shaktikanta Das, Governor, the Reserve Bank of India, gave a statement today following MPC meeting. The Monetary Policy Committee (MPC) met on 6th, 7th and 8th December 2023.
On a review of the bulk deposit limit, it is proposed by the RBI today to revise the definition of bulk deposits as ‘Single Rupee term deposit of Rs3 crore and above’ for SCBs (excluding RRBs) and SFBs. Further, it is also proposed to define the bulk deposit limit for Local Area Banks as ‘Single Rupee term deposits of Rs1 crore and above’, as applicable in case of RRBs.
Customer protection
Customer protection remains on top of the Reserve Bank’s priorities. In general, we have observed that guidelines on Key Facts Statement (KFS) are followed, but a few REs still charge fees, etc. that are not specified or disclosed in the Key Facts Statement (KFS). It has also been observed in some micro finance institutions and NBFCs that the interest rates on small value loans are high and appear to be usurious. The regulatory freedom enjoyed by the REs in respect of interest rates and charges should be used judiciously to ensure fair and transparent pricing of products and services. The Reserve Bank continues its constructive engagements with such financial entities to safeguard the interest of customers and ensure overall financial stability.
