**Summary:**
The Reserve Bank of India (RBI) released a draft circular on February 21, 2025, concerning responsible lending conduct related to foreclosure charges and prepayment penalties on loans. This action follows an announcement made on October 9, 2024, regarding the review of existing regulatory guidelines. The RBI is soliciting feedback from stakeholders and the public on the draft circular, with comments due by March 21, 2025, via email. A final circular will be issued after considering the received feedback.
Key Entities Referenced
RESERVE BANK OF INDIA: Organization; the issuer of the press release.
www.rbi.org.in: Website of the Reserve Bank of India.
Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001: Address of the Department of Communication, Central Office of the Reserve Bank of India.
022 2266 0502: Phone number of the Reserve Bank of India.
February 21, 2025: Date of the press release.
Responsible Lending Conduct Levy of Foreclosure Charges Prepayment Penalties on Loans: Subject of the draft circular for which the Reserve Bank of India is inviting comments.
Statement on Developmental and Regulatory Policies dated October 09, 2024: Document referred to regarding the review of regulatory guidelines on foreclosure charges and prepayment penalties on loans.
October 09, 2024: Date of the Statement on Developmental and Regulatory Policies.
Reserve Bank: Short name for the Reserve Bank of India
March 21, 2025: Deadline for submitting comments on the draft circular.
Puneet Pancholy: Name of the Chief General Manager.
�ेस �काशनी PRESS RELEASE
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi सचं ार िवभाग, क��ीय कायार्लय, शहीद भगत �संह माग,र् फोटर्, मबुं ई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मले /email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
February 21, 2025
RBI invites comments on the draft circular on ‘Responsible Lending Conduct –
Levy of Foreclosure Charges/ Pre-payment Penalties on Loans’
In pursuance of the announcement made in the Statement on Developmental and
Regulatory Policies dated October 09, 2024 regarding the review of extant regulatory
guidelines on levy of foreclosure charges/ pre-payment penalties on loans, Reserve
Bank has released today the draft circular in this regard.
Comments/feedback by the stakeholders and members of public on the draft
circular may be submitted by March 21, 2025 through e-mail. Final circular shall be
issued after considering the stakeholder/ public comments.
(Puneet Pancholy)
Press Release: 2024-2025/2231 Chief General Manager