Don't see much impact from ban on prepayment charges: BoB

The National Housing Board mandated to housing finance companies that they cannot charge any penalty for prepayment and also cannot charge differential rates for new and old customers. RBI has already issued an advisory to the banks that you too cannot charge prepayment penalty this could now become mandatory.

Reading on the impact, MD Mallya, chairman and managing director of Bank of Baroda says, he sees not much churn of taking place due to this move. "There are a host of other things which are related as far as transfer of accounts is concerned. Hence, if one keeps that in mind, I don't think flight of customers from one bank to another would take place at a large magnitude as one would expect it to be," he says. Below is an edited transcript of MD Mallya's interview to CNBC-TV18. Also watch the accompanying video. Q: With no prepayment penalty now, what happens to the banks? Will you see a large churn of customers if this exit barrier is removed? A: We should wait for RBI