💼 Empowering Small Businesses: RBI proposes to do away with pre-payment levy on business loans taken by individuals/MSEs. "REs, other than Tier 1 and Tier 2 Primary (Urban) Co-operative Banks and Base Layer NBFCs, shall not levy any charges/ penalties in case of foreclosure/ prepayment of floating rate loans granted to individuals and MSE borrowers, with or without co-obligant(s), for business purpose," an RBI's draft circular said. However, in case of MSE borrowers, these instructions shall be applicable up to the aggregate sanctioned limit of Rs 7.50 crore per borrower, said the draft on 'Responsible Lending Conduct - Levy of Foreclosure Charges/ Pre-payment Penalties on Loans'. The draft circular further said REs should permit foreclosure/ pre-payment of loans without stipulating any minimum lock-in period.