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Virendra Kankariya   23 October 2021

Take over of cash credit limit

My CC limits expired as bank dilly dallied on renewal, assuring that it is in process and will be done soon. I got limits from another bank  at much better terms. and that bank paid my dues in CC account to take over my account. Now my old bank Axis has demanded 6% foreclosure and other penal charges for closing the account. My sanction letter has expired months back.  Axis was peeved because i went to another bank. Since i no longer have a valid agreement or contract with them and CC is on demand loan which expires every year, am i liable for these coercive charges?


 1 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     23 October 2021

The Reserve Bank of India on Friday clarified that banks and non-banking finance companies cannot impose foreclosure charges/pre-payment penalties on any floating rate term loan sanctioned, for purposes other than business, to individual borrowers with or without co-obligant(s).

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