90+ Lawyers are online 
foreclosure charges on overdraft facility from bank.
19-Sep-2023 (In Corporate Law)
i am having a proprietary concern firm, i had availed a OD (Overdraft) facility from XYZ bank.i have repaid the OD facility to bank with interest. now the bank is asking to pay 2% foreclosure charges to close this matter & to release my original property papers which i had given as security to them. the foreclosure charge point was already mentioned in our agreement, but While the RBI's directive to do away with pre-payment penalty is applicable to all types of floating rate loans, it is forcibly applicable only for individual By definition this would also include sole proprietors
First, you should file a complaint with the RBI as the bank in question is flouting the norms prescribed by the RBI.
If there is any confusion with respect to whether the rule applies to sole proprietorships you could file an RTI application with the RBI and furnish the response of the RBI to the bank.
If the bank still does not relent on the issue then you should proceed with your complaint to the RBI.
Further, you always have the option of approaching the consumer courts.
196+
Adv. Siddhant Sharma
Delhi | 200+ Answers
Chat
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."
