The RBI has mandated that banks and NBFCs cease charging prepayment penalties on business loans to individuals and MSEs, regardless of co-obligants. Small finance banks, urban co-operatives, and regional rural banks must also waive these charges on loans up to ₹50 lakh. This directive applies to all prepayment sources, partial or full, without any lock-in period.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets