"It is advised that banks will not be permitted to charge foreclosure charges or pre-payment penalties on all floating-rate term loans sanctioned to individual borrowers, with immediate effect," the RBI said yesterday. Floating loan products include housing, corporate, vehicle and personal loans.

Asked about challenges for the new government, Bhattacharya said the biggest would be controlling inflation, reviving growth, managing expectations and ensuring implementation of policies.

"But we also have to understand that the new government will also have to have a lot of consensus-building with states as many policies need state participation. For instance, land acquisition," she said.

On the RBI ban on refinancing of forex debt to pay back rupee loans, she said there could be some difficulties for over-leveraged companies and added that companies with large forex earnings should be allowed to do so.

"Those companies which have good earnings in foreign currency should also be able to borrow in foreign currency because that does improve finances, margins. The rupee rate is still higher than foreign currency rates and if you have a natural hedge you will be able to take advantage of it," she said.

Bhattacharya, however, said excessive externalisation of the rupee without putting in the rest of the pieces should not be encouraged as without ensuring repayment or servicing of the loan, it would be a riskier short-term measure. It would not make a difference to an organisation and would end up increasing risks.

On non-performing assets, or bad loans, she said the worst is behind the system as many affected sectors such as telecom and mining have returned to healthy growth.

"Some of the sectors that first got into trouble, including telecom, are doing well now. The mines are being opened up. The power sector is beginning to do quite well. These are good indicators for us. We hope the momentum continues," she said.