January 20, 2010: Amidst media reports of guidelines for home loans that attempt to clamp down on teaser rates, the Indian Bank Association (IBA) has said that it has received no communication from the Reserve Bank of India (RBI), according to reports .

According to these speculative reports, customers will have to set aside 30-35% of their total home loan value. Senior officials at the IBA have affirmed that they have not received any communication from the RBI and that they would not dictate terms and conditions to banks.

The IBA is in fact not in a position to come out with guidelines on home loan rates. The RBI has mentioned to the IBA and banks that banks should be transparent when it comes to calculating home loan rates and should pass on the benefit both to the old and the new customers under the floating home loan rate scheme.