Are processing fees regulated by the government?
Curious about Processing Fee
Yes, processing fees are regulated by the government in India. The Reserve Bank of India (RBI) has issued guidelines to regulate the processing fees charged by banks and other financial institutions. The guidelines require banks to disclose the processing fee, which must be reasonable and not exceed the actual cost incurred by the bank. Additionally, banks are required to explain the basis for calculating the processing fee to the borrower. The guidelines also require banks to refund the processing fee if the loan is not sanctioned, and the fee must be reasonable in relation to the loan amount.