Subsequently, following a comprehensive review of the business correspondent guidelines, we have relaxed this condition and banks are now allowed to recover reasonable charges from the customer for providing the service. Branchless banking illustrates an area where there have been progressive relaxations of the regulations for furthering penetration while ensuring consumer protection. Deregulation of interest rates for small loans 18.
Currently, interest rates for loans up to Rs.200000 (about $ in the priority sector are capped at the prime lending rates of banks. RBI has taken a decision to free the interest rates, which will come into effect from July 1, 2010.