The Reserve Bank of India (RBI) has prolonged the timeline for the implementation of truthful lending apply by banks on penal expenses in loan accounts by three months. The directions had been to come back into impact from January 1, 2024.
“However, considering that certain clarifications and additional time has been sought by some regulated entities (REs) to reconfigure their internal systems and operationalize the circular, it has been decided to extend the timeline for implementation of the instructions by three months,” the RBI stated in a round.
Accordingly, REs shall be sure that the directions are applied in respect of all of the contemporary loans availed from April 1, 2024 onwards. In the case of current loans, the switchover to new penal expenses regime shall be ensured on the following overview/ renewal date falling on or after April 1, 2024, however not later than June 30, 2024,” it added.
