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RBI issues fresh norms to curb customer discrimination

Spread charged to an existing customer cannot be hiked except due to deterioration in credit risk profile

The Reserve Bank of India (RBI) has come down heavily on banks for charging different interest rates to customers with similar profiles, saying such discrimination cannot be accepted. To study credit pricing, RBI had formed a working group headed by Anand Sinha, former deputy governor of the central bank. The panel’s report, made public on Thursday, has suggested stringent norms to make loan pricing more transparent. “The working group recommends the spread charged to an existing customer cannot be increased except on account of deterioration in the customer’s credit ...