The Reserve Bank of India (RBI) on Thursday asked banks to disclose more information on lending rates and fees on their websites, “for promoting transparency in the operations of the banks.”
These guidelines will come into effect from April 1, 2015.
“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,” the RBIstated in a notification to all banks.
The central bank said that this would enhance “further transparency in pricing of credit.”
Banks were also asked to disclose the total fees and charges applicable on various types of loans to individual borrower 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 Reserve Bank further stipulated banks to publish Annual Percentage Rate (APR) or similar other arrangement of representing the total cost of credit on a loan to an individual borrower on their websites.
