RBI not aware of irregularities in private banks
An RTI response from Reserve Bank of India (RBI) reveals that it has no information about private banks charging heavy penalties in addition to extra-ordinary high interest-rates on credit-card default-payments.
AN RTI response from the Reserve Bank of India (RBI) has revealed that it has no information about private banks charging heavy penalties in addition to extra-ordinary high interest-rates on credit-card default-payments.
While RBI has revealed that it does not approve penalty/fore-closure charges on pre-payment of loans, yet on the other hand it has admitted such a faulty practice prevailing in the banks. If RBI does not approve the policy, it should immediately direct banks not to levy any such fore-closure charges.
Shockingly and surprisingly the central Bank which otherwise should play its role of being a monitoring authority (rather than merely being an advisory body), is also not aware about malpractice of private banks charging heavy over-limit charges on payments approved above the sanctioned limit of credit-card holders. Instead of blocking payment-approval after crossing credit-card limits, banks impose heavy over-limit charges which at times exceed by even a petty amount sanctioned above the credit-card limit penalising credit-card holders who at times inadvertently cross the limit marginally.
It seems that authorities at RBI and Union Finance Ministry are in some agreement with private banks whereby they deliberately close their eyes to unethical tactics of private banks to mint money by looting credit-card holders. RBI authorities should be taken to task for not caring to check such irregularities even though brought to their notice through RTI petitions. RBI should be a perfect monitoring body by fixing uniform rules, default-penalties and interest-rates on all types of loans, advances and credit-limits including those on credit-cards.
It seems that authorities at RBI and Union Finance Ministry are in some agreement with private banks whereby they deliberately close their eyes to unethical tactics of private banks to mint money by looting credit-card holders. RBI authorities should be taken to task for not caring to check such irregularities even though brought to their notice through RTI petitions. RBI should be a perfect monitoring body by fixing uniform rules, default-penalties and interest-rates on all types of loans, advances and credit-limits including those on credit-cards.
While RBI has revealed that it does not approve penalty/fore-closure charges on pre-payment of loans, yet on the other hand it has admitted such a faulty practice prevailing in the banks. If RBI does not approve the policy, it should immediately direct banks not to levy any such fore-closure charges.
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