Hi All, My mom took a Personal Loan from Fullerton India, which is not a Bank but does issue various types of Loans as per guidlines of RBI. Her loan got closed long back, but she wasn’t issued an NOC. Upon enquiry, I found out that there were 9 cheque bounces and they are now asking us to pay us 2900 for cheque bounce charges and some 5900 as penal charges. The actual mode of payment was ECS on 5th every month from my mom\’s SBI Account.

I remember RBI issuing an order which prevented the non-financial institute to collect the cheque bounce charges for Loan. However, SBI bank where my mom holds a saving account can collect the required charges. I searched a lot but I am unable to find any such order online. Now, my questions are :

1.  Is fullerton eligible to collect these cheque bounce charge of 2900 and penal charges of 5900?
2. Does any one have the any link to the RBI guidelines for collection of cheque bounce?
3. For total of 9 cheque bounces, the charges come to around 1000 per each miss. Which is ridiculiously high, considering the fact that my mom later paid the amount within a week.

Any kind of help would be highly appreciated. Thanks and Regards, Nitin