RBI cautions banks charging high prices on products offered to customers
By Joseph Samson
Dec 31, 2012
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The Reserve Bank has cautioned banks on charging high prices on the product offered to customers. Deputy Governor, Mr. K C Chakraborty said that a new set of guidelines would be announced during the coming Ombudsman Conference in Mumbai.

"I am telling you that if you believe that the pricing has become exploratory then we will intervene. We have intervened in the case of micro-finance institutions. What I am saying is discriminatory pricing (on products offered to customers) should not be there. Pricing should be non-discriminatory," Mr. Chakrabarty said.

During the Ombudsman Conference, to be chaired by RBI Governor Mr. D Subbarao, on January 4, new guidelines would be announced. "Some new guidelines will come on how it (RBI) can be more stringent in pricing the products to customers of banks", he said.

Raising the question on why banks offer higher interest rates on education loans compared to home loans, Mr. Subbarao said that the bank should understand the customer's needs and the bank should be reasonable to customers. He added that the bank to, "do not do lip service".


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