Friday, August 12, 2011

Whether RBI's 90 days norm for servicing of interest also applys for penal interest/charge?

non-servicing of monthly interest within 90 days turns a loan 'Non-performing'. Whether the same would be applicable for penal interest/charges. Further, if penal interest is not charged in the account, whether it can be considered as overdue from date of default, for which penal interest is chargable.

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