POSTED BY Suresh Agarwal ON April 30, 2012 12:01 pm COMMENTS (3)

I want to know ,
Are all the rules as & when declared by RBI binding on the Banks ?
I noted that RBI suggests but not binds the rules on Banks in customer relations matters.
But Banks fools the customers saying regulations are as per RBI rules which are forced to apply.
Banks doosare ke kandhe per bandook rakhkar goli chalati he.
Yaneki apana ullu siddha karati he.
I have taken loan from Stan Chart Bank under Home Loan Saver A/c.in the year Mar,2010.
as per following conditions:
1)Floating rate of Interest-agreed
2)No annual charges.agreed at the time of taking loan.
3)Pre-payment charges @ 2%-agreed
Immediately in the year Mar,2011,annual charges 1% applicable on the loan amt balance in the year.
The annual charges applicable on 31/03/2011 were waived by the Bank.
As the Bank to say this is the rules of RBI which we should follow.
as per my view it is not binding on Bank to follow the rules of RBI ,If the Bank already gives some benefit to customers.Banks must pass on to customers already enjoying the customers.Today RBI requests all banks not to charge prepayment charges.But still my Bank is not ready to give away prepayment charges.
Suresh Agarwal

3 replies on this article “RBI RULES REALLY BINDINGS ON BANKS”

  1. Suresh Agarwal says:

    Dear Ashal thanks for reply.I want to bring in your knowledge that my Home Loan is against the commercial property.
    At beginning of Home loan same charges were for Home Loan as well commercial loans.
    They did not point any difference.As soon as procedure completed they started 1% annual charges for the services given by them saying RBI has ordered us(Banks) to charge the service charges to all.Stan Chart Bank today also refuses to waive (not to charge) the 2% prepayment penalty.
    Though The RBI tells not to charge prepayment of loan penalty.Is this rule not binding on Bank.
    For switching of loan I have to bear prepayment and new T&C applicable s.
    Pl suggest.

    1. Dear Suresh, is it home loan or commercial property loan? the reason is, for you, the ROI may be same but the treatment in terms of RBI’s rule for home loans & other loans ‘ll be different.



  2. Dear Suresh, why are you not transferring your home loan from S&C to another bank, where the T&Cs are good for you.

    By the way, what is this annual 1% charge, can you explain?

    Like S&C’s Home Saver, similar product is available with SBI under the name Max Gain. Try to understand the same & if suitable switch your home loan.



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