Reserve Bank Of India (RBI) — Prepayment of Vehicle Loan Penalty

Address:

Chennai, Tamil Nadu

Sir, I Have taken a Car Loan from Axis Bank, am trying to close the loan amount and the are asking me to do a pre closure payment of 5% of principal and service tax for it, and i read in online that on May 7 2014 RBI has asked all the banks to not charge for the pre-closure of vehicle and home loans, is it true, do I have to pay 5% of the principal amount to the Bank or can I raise a complaint. please advice thanks. Reference : http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8868&Mode=0 http://www.mydigitalfc.com/news/prepayment-penalty-personal-car-loans-gone-792 Note: I tried contacting the RBI website contact us and its down for almost 3 weeks and not even Chennai RBI email is working that's why raising it here.