Syndicate Bank — mclr conversion for housing loan

Address:

Alappuzha, Kerala

Recently i came to know about mclr. I have a loan from syndicate bank. Till now it was running on the old rate system. When enquired from the bank, they told me that i can convert my loan interest rate according to mclr. They also told me that 0.5% of the total outstanding amount or inr 10, 000 whichever is higher will be the charges. When talked to my friends they told me about union bank which is not charging such amount/fee.

Is there a rule from rbi that each bank can charge such fee or only my bank is charging it? Or is the bank correct in taking such charges? Please advise me how to go ahead with this matter.
Thanks & regards