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      Question

      From when will RBI’s bar on prepayment penalties for

      floating rate loans to MSEs be effective? 
      A April 1, 2025 Correct Answer Incorrect Answer
      B December 1, 2025 Correct Answer Incorrect Answer
      C January 1, 2026 Correct Answer Incorrect Answer
      D July 1, 2025 Correct Answer Incorrect Answer
      E March 1, 2026 Correct Answer Incorrect Answer

      Solution

      RBI’s directive to eliminate prepayment penalties on floating rate loans to MSEs applies to loans sanctioned or renewed on or after January 1, 2026. 

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