(a) whether the banks and financial institutions providing home loans are
charging high rate of interest from the customers by keeping them in the
dark as reported in Dainik Jagran dated November 1, 2006;
(b) if so, the facts and the details thereof;
(c) whether the: Government has taken any actiion against such banks/financial
institutions;
(d) if so, the details thereof;
(e) whether the Reserve Bank of India has given any directions in this regard;
and
(f) if so, the details thereof?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) to (f) : The Reserve Bank of India (RBI), in its mid-term Review of Annual
Policy for the yesir 2006-07, has pointed out that some banks, while lending
for housing are not fully transparent in indicating the circumstances and factors
governing the benchmark in respect of floating rates as well as in regard to reset
clauses. Banks are, therefore, urged to review all practices which are less than fair
or transparent. Banks are also urged to afford an opportunity to borrowers to obtain
fair and transparent terms consistent with legal requirements and fair practices.