The Reserve Bank of India has vide circular no. DoR.MCS.REC.28/01.01.001/2023-24 (RBI/2023-24/53) dated August 18, 2023 on "Fair Lending Practice - Penal Charges in Loan Accounts" issued instructions (RBI instructions) regarding quantum and levy of Penal charges on Loan Accounts. The RBI instruction mandate penalty to be treated as Penal charges and not be levied as " Penal Interest".

We wish to inform you that the Penal Interest (If and when applicable) will be treated as Penal charges w.e.f. 01-04-2024 for your loan account. The penal charges applicable for your loan are detailed below:

One-time Penal charges

Less than Rs. 7000- Rs. 150 upfront

Greater than Rs. 7000- Rs. 200 upfront

Daily Penal charges

Rs 50 per day

Please note, the said penal charges will be subject to GST as per applicable laws on Goods and Services Tax in India, and GST will be charged separately.