The Reserve Bank today directed banks not to levy any penalty on individual borrowers for pre-paying floating loans. The apex bank has 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. A RBI notification said that the floating loan products include housing, corporate, vehicle and personal loans.Yesterday, the Reserve Bank asked banks not to levy penalties on customers who do not maintain a minimum balance in any inoperative account, as part of a consumer protection initiative.