Mumbai: The Reserve Bank today directed non-banking financial companies not to levy pre-payment penalties on floating rate term loans, including housing loans.

"As a measure of customer protection and also in order to bring in uniformity with regard to prepayment of various loans by borrowers of banks and NBFCs, it is advised that NBFCs shall not charge foreclosure charges/pre-payment penalties on all floating rate term loans sanctioned to individual borrowers," RBI said in a notification.

Floating loan products include housing, corporate, vehicle and personal loans.

Earlier in May this year, RBI had asked banks not to levy any penalty on individual borrowers for pre-paying floating loans.

Also the RBI made it clear that physical Aadhaar card or letter issued by UIDAI containing details of name, address and Aadhaar number received through post would continue to be accepted as an officially valid document.

READ MORE: Mutual Funds Exposure To Bank Stocks Hits Record High Of 55,000 Crore and 10 Hidden Things Your Credit Card Company Won't Tell You