Legal Question in Banking Law in India
Dear sir,
Is there any RBI circular/guideline which stipulate Banks can collect prepayment charges from the customers in the case of a takeover of the a/c from another bank? Is there any cap/ceiling stipulated for such charges. Recently in a case Axis Bank collected 4% on working capital limit from a customer when their a/c was taken over by another Bank. Is it in order, simply because that was one of the terms and conditions mentioned in their sanction letter ?
1 Answer from Attorneys
29.09.2013
Dear Sir / Madam,
As advised earlier, if the bank has clearly stipulated in the sanction letter that the prepayment charges for closure of the facilities by way of takeover by another bank will be 4% and you have agreed to it, all you can do is request the bank to reduce it to 2% or 3% based on the RBI guidelines that I have already given you.
Regards,
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