The Reserve Bank of India has extended the requirement of key fact statement, a document that clearly explains lending terms, to all retail and small business loans to enhance transparency.
At present, loans also include fees and charges other than the rate of interest, Governor Shaktikanta Das said in his monetary policy statement on Thursday. These gets loaded in actual interest rate while assessing the annualised interest rate, he said.
The key fact statement is aimed at enhancing transparency on charges and fees of loans, helping customers make informed decision, the RBI governor said.
Earlier, the RBI had mandated the statement only for bank lending to individual borrowers, digital loans by regulated entities and microfinance loans.
India's Monetary Policy Committee kept the the benchmark repo rate unchanged at 6.50% for the sixth straight meet on Thursday.
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