New Delhi: The Reserve Bank of India (RBI) on Monday directed banks to disclose to customers details of all commissions and fees charged for selling or marketing products of various mutual funds, insurance or other financial companies.
Capital markets regulator Securities and Exchange Board of India had in September asked all mutual funds’ distributors to disclose commissions and fees while selling a product.
Seeking transparency: The RBI building in New Delhi. Mint
Separately, RBI said it will soon come out with norms for banks to augment the capital requirements that the lenders have to keep aside against bad assets. “We will be issuing the circular (provisioning against non-performing assets or NPAs) so you can then see details on that,” RBI deputy governor Usha Thorat said. RBI governor D. Subbarao, in the second quarterly review of the monetary policy in October, had said provisioning against bad debts needed to be raised to not less than 70% by September 2010.
“It has been advised to banks to augment their provisioning cushions consisting of specific provisions against NPAs as well as floating provisions, and ensure that their total provisioning coverage ratio, including floating provisions, is not less than 70%. Banks should achieve this norm not later than end-September 2010,” Subbarao said.
(‘PTI’ countributed to this story.)