Share on LinkedInShare on LinkedIn

ARTICLE · 25 JULY 2025

Sagus Speaks - July 2025 | Part I

Sagus Legal
Sagus Legal
Contributor
Sagus Legal

Sagus Legal

We are a full-service law firm providing comprehensive legal advisory and advocacy to clients. Our...

View firm profile
Explore more from Sagus Legal

Reserve Bank of India ("RBI") by notification dated 02.07.20251 notified the RBI (Pre-Payment Charges on Loans) Directions, 2025 ("RBI Pre-Payment Charges Directions") to regulate activities...

IndiaCorporate/Commercial Law

This Newsletter covers key Regulatory & Policy Updates, Government Notifications and Judicial Pronouncements.

REGULATORY AND POLICY UPDATES

RBI notifies RBI (Pre-Payment Charges on Loans) Directions, 2025.

Reserve Bank of India (“RBI”) by notification dated 02.07.20251 notified the RBI (Pre-Payment Charges on Loans) Directions, 2025 (“RBI Pre-Payment Charges Directions”) to regulate activities of all commercial banks (excluding payment banks), cooperative banks, NonBanking Finance Companies (“NBFCs”), and All India Financial Institutions (“AIFIs”) (collectively the “Regulated Entities” or “REs”) concerning levy of prepayment charges in case of loans sanctioned to Micro and Small Enterprises (“MSEs”) and inclusion of restrictive clauses in loan agreements to deter borrowers from refinancing their loans from another lender either for availing lower rates of interest or better terms of service.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from