Q: Is this charges compliant with regulations of home loan?

A: Navigating the complexities of loan repayments and associated charges can be challenging, especially when faced with additional fees like recovery agency fees and notice fees. The charges applied by banks for loan recovery processes, including those under the SARFAESI Act in India, should be clearly outlined in your loan agreement. It's important to review the terms and conditions specified in your loan agreement with the State Bank of India (SBI) to determine whether these charges were mentioned and are in accordance with the bank's policy and regulatory guidelines.

The Reserve Bank of India (RBI) provides guidelines on fair practices for lenders, which include transparent communication of charges and fees to borrowers. If the additional charges were not disclosed in your loan agreement or were not clearly communicated to you at the outset, there might be grounds to dispute these charges. It's advisable to request a detailed breakdown of the charges from SBI and an explanation of how they comply with regulatory requirements.

If you find that these charges were not part of your initial agreement or if there is ambiguity about their compliance with regulatory norms, consider reaching out to the bank's customer grievance redressal officer for clarification or dispute resolution. Should this not yield a satisfactory response, the next step could involve filing a complaint with the RBI's ombudsman scheme, which addresses disputes between consumers and banks. Remember, having clear documentation and direct communication with your bank will be crucial throughout this process.