RBI decides to harmonise instructions on Key Facts Statement and disclosure of Annual Percentage Rate
Editorial Note : Earlier, the RBI has issued instructions on Key Facts Statement (KFS) and disclosure of Annual Percentage Rate (APR). Now, RBI has decided to harmonize the instructions on the subject. The harmonised instructions shall be applicable in cases of all retail and MSME term loan products extended by all regulated entities (REs). REs shall provide a KFS to all prospective borrowers to help them take an informed view before executing the loan contract, as per the prescribed format.