FIDC requests RBI to not rename ‘Penal Interest’ to ‘Charges’ to avoid GST Implications

The Finance Industry Development Council (FIDC), a prominent representative body of Non-Banking Financial Companies (NBFCs) in India, has recently submitted a formal request to the Reserve Bank of India (RBI) to reconsider the classification of penal interest as ‘charges,’ citing potential tax implications. In a detailed representation addressed to the RBI, the FIDC expressed concerns…