The Reserve Bank of India (RBI) on Thursday asked banks to disclose more information on lending rates and fees for greater transparency to customers.
Banks should display on their website the interest rate range of contracted loans for the past quarter for different categories of advances granted to individual borrowers along with mean interest rates for such loans, it said. This is being done to further enhance transparency in pricing of credit, the RBI said in a notification.
“The total fees and charges applicable on various types of loans to individual borrower should be disclosed at the time of processing of loan as well as displayed on the website of banks for transparency and comparability and to facilitate informed decision making by customers,” the RBI circular said.
These measures, based on the recommendations of Working Group on Pricing of Credit, will come into force with effect from April 1, 2015.