RBI Penalty Checker
Verify if your bank's foreclosure fees and late charges are compliant with the latest 2026 RBI mandates.
Quick Summary: RBI Penalty Checker
As per latest RBI 'Fair Lending Practice' guidelines, banks cannot charge 'penal interest' (interest on interest); they can only charge 'penal charges' which must be reasonable and not capitalized. Furthermore, foreclosure charges on floating-rate individual loans are prohibited. Use this checker to audit your bank's charges.
How to use the RBI Penalty Checker
- 1
Select Loan Type
Choose between Floating Rate or Fixed Rate and Individual or Business entity.
- 2
Enter Penalty Amount
Input the late fee or foreclosure charge your bank is quoting.
- 3
Check Compliance
The tool flags if the charge violates RBI circulars (e.g. charging foreclosure on floating rate home loans).
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Regulatory Disclaimer
Last verified May 2026
Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.
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