RBI guidelines regarding the rate of interest in case of a jewel loan from Muthoot Finance (P) Ltd was sought – PIO: Terms & conditions in case of NBFCs were determined as per the contract between the borrower & company; RBI has fair practice code
1. The appellant Shri N. Sekar, submitted RTI application dated 17.01.2014 before the Central Public Information Officer (CPIO), Reserve Bank of India, Chennai seeking the rate of interest as per RBI guidelines in case a customer takes jewel loan from Muthoot Finance (P) Ltd.
2. The CPIO vide letter dated 12.02.2014 informed the appellant that the terms and conditions of the loan granted by NBFCs, including the rate of interest etc. were determined as per the contractual agreement between the borrower and the company. However, to ensure that the NBFC conducts its business in accordance with best practices and the contract between the NBFC and its borrowers were transparent, the RBI had issued instructions vide circular DNBS CC. PD No. 266/ 03 100 01/2011-12 dated 26.3.2012. These were also available in the Bank’s Master Circular DNBS (PD) CC No. 340/03. 10.042/2013-14 dated 1.7.2013 requiring the NBFCs to adhere to the RBI’s guidelines on Fair Practices Code. These guidelines were also available on RBI’s website. Dissatisfied with the reply of the CPIO, the appellant filed an appeal on 03.03.2014 before the first appellate authority (FAA). The FAA vide order dated 07.04.2014 concurred with the decision of the CPIO.
3. Thereafter the appellant filed the present appeal before the Commission.
4. The matter was heard by the Commission. The appellant did not attend the hearing in spite of notice of hearing having been sent to him. In his appeal filed before the Commission the appellant stated that the respondents had not provided the rate of interest to be charged by NBFC against jewel loan. The respondents reiterated that the appellant had been duly replied in response to his RTI application.
5. The Commission accepts the submissions of the respondents and holds that the appellant had been appropriately replied to by the respondents. The appeal is disposed of.
Citation: Shri N. Sekar v. Reserve Bank of India in Appeal: No. CIC/MP/A/2014/002284