Mumbai, Sep 7: Reserve Bank Deputy Governor Subir Gokarn today said the central bank has no plan to ban teaser loans but warned that any such product will attract 2 percent additional provisioning.
“There is no attempt or intent on the part of the RBI to stop these products or prevent them any way. We are only saying that there is some additional risks involved in such products and hence more provisioning have to be made for any such products,” Gokarn told reporters on the sidelines of a Ficci seminar here.
“Whether they fall into such (teaser) category is something my colleagues in the regulatory department to decide, but the policy response to any such structure is that once it is deemed to satisfy any of those criteria of (teaser loans), it would attract higher provisioning requirement of 2 percent which we imposed recently.
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