Category: Law

Yes, it is legal to take two personal loans at the same time in India. There is no law that prevents an individual from borrowing multiple personal loans from the…

Yes, banks can legally transfer or share certain information relating to Non-Performing Asset (NPA) loans with authorised third parties in specific circumstances, but they cannot freely sell confidential customer information…

Yes, you can ask a bank or lender for relief when a financial crisis makes it difficult to pay your EMI, but simply stopping EMI payments without an approved arrangement…

An NBFC may contact a borrower’s relatives in limited circumstances, but it cannot harass, threaten, shame, or repeatedly contact relatives to recover the borrower’s loan. The Reserve Bank of India…

Yes, banks can legally share certain credit information with CIBIL without obtaining separate permission every time they report it. In India, reporting credit information to authorised Credit Information Companies (CICs)…

Yes, it is generally legal to open a bank account in India without Aadhaar. Aadhaar is an important identity document, but it is not the only document that can be…

Yes, a bank can decline a UPI transaction in certain circumstances, but it should not arbitrarily reject legitimate transactions without a valid operational, security, regulatory or technical basis. UPI transactions…

Yes, banks in India can generally charge a minimum balance penalty or shortfall charge, but only subject to applicable RBI rules, the account’s terms and conditions, and proper disclosure to…

Yes, banks can generally deduct an EMI directly from a borrower’s bank account without sending a separate reminder before every EMI, provided the borrower has previously authorised an auto-debit, ECS,…

Yes, banks and regulated lenders can legally send recovery agents to a borrower’s home for loan recovery, but they must follow RBI’s rules on fair recovery practices and customer dignity.…