DRAFT OF NBFCs FAIR PRACTICES CODE

RBI has laid down draft guidelines on fair practices code for NBFCs. As per the said code:

• NBFCs have been asked to provide a meaningful comparison to the terms and conditions of other NBFCs in their loan application form.
• NBFCs should convey in writing to the borrower, the amount of loan sanctioned along with the annualized rate of interest and method of application thereof.