Penal charges extract:

The Reserve Bank of India has issued a circular (No. DoR.MCS.REC.28/01.01.001/2023-24) dated August 18, 2023 , outlining "Fair Lending Practice - Penal Charges in Loan Accounts." The guidelines specify that penalties should be treated as penal charges and not as "Penal Interest."

Effective from April 1, 2024 , any applicable Penal Interest will be categorized as Penal Charges for your loan account. The detailed charges are as follows:

One-Time Penal Charges

Less than ₹7,000: ₹150 upfront

Greater than ₹7,000: ₹200 upfront

Daily Penal Charges

₹50 per day

Note: Penal charges are subject to GST as per applicable Goods and Services Tax (GST) laws in India, which will be charged separately.