RBI tighten norms for loan recovery agents

Mumbai: The Reserve Bank of India (RBI) on Friday has said companies need to ensure that their recovery agents do not resort to harassment of any person while collecting debts.

The timing for call for recovery has been set between 8 a.m. and 7 p.m.

“It has been observed that the agents employed by REs have been deviating from the extant instructions governing the outsourcing of financial services,” the RBI said in a release.

“In view of concerns arising from the activities of these agents, it is advised that the REs shall strictly ensure that they or their agents do not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude upon the privacy of the debtors’ family members, referees and friends, sending inappropriate messages either on mobile or through social media, making threatening and/or anonymous calls, persistently calling the borrower and/ or calling the borrower before 8 a.m. and after 7 p.m. for recovery of overdue loans, making false and misleading representations, etc,” it added.

“The extant guidelines on permissible hours for calling borrowers on phone for recovery purpose are currently specified in respect of Housing Finance Companies and REs extending microfinance loans. Taking into account certain recent developments including growing incidences of unacceptable practices followed by REs, the Reserve Bank of India has issued certain additional instructions to REs by extending the scope of the guidelines,” the circular said

Earlier, the attention of the RBI Governor has been drawn to the recovery methods used by some companies while collecting debts. (IANS)

US court orders Byju’s to freeze $533 million owed to lenders

New York: The steering committee representing term-loan lenders of Byju's $1.2 billion loan on Friday said that a US judge has ordered to prohibit further movement or use of $533...

Strong demographic trend a structural positive for India: Morgan Stanley

New Delhi: India’s demographic trend of a younger workforce positions it positively as most large economies face shrinking working-age populations and tight labour markets, global brokerage, Morgan Stanley said. Per...

EAM Jaishankar calls FTA with four European nations ‘a bold achievement’

New Delhi: Calling the signing of the India-EFTA Trade and Economic Partnership Agreement (TEPA) a "bold achievement", External Affairs Minister S. Jaishankar said on Sunday that the move reflects a...

India has 8,000 startups led by women with $23 bn in funding: Report

New Delhi: India is now home to more than 8,000 startups that have women founders with a cumulative funding of nearly $23 billion till now, a report showed on Thursday....

RBI’s punitive actions will keep NBFCs on the edge

New Delhi: In continuation with its system clean-up mission, the RBI imposed an embargo on IIFL’s gold loan business on March 4 and on JM Financial Products’ (subsidiary of JM...

India aims 5-fold increase in global space economy share: Union Minister

New Delhi: After Prime Minister Narendra Modi took the decision to “unlock” the space sector from the “veil of secrecy”, the country is now targeting a five-fold increase in its...

Interoperable payment system for Net banking to be launched this year: RBI chief

Mumbai: RBI Governor Shaktikanta Das on Monday said that the interoperable payment system for internet banking is expected to be launched this year to facilitate quicker settlement of funds for...

Moody’s ups India’s growth forecast, expects policy continuity after LS polls

Mumbai: Moody's Investor Service on Monday raised India’s GDP growth forecast and expects the country to remain the fastest growing economy among the G-20 nations in 2024. "India's economy has...

India okays rice exports to Africa in outreach to Global South

New Delhi: The government has, as part of India's outreach to the Global South, allowed the exports of 1,10,000 tonnes of rice to three African countries to help them meet...

Reinstate Bharatmatrimony, Info Edge, Shaadi.com, TrulyMadly: IAMAI tells Google

New Delhi: The Internet and Mobile Association of India (IAMAI) on Saturday slammed removal of Indian companies' apps and asked Google to reinstate those delisted apps on its Play Store....

Delhi’s per capita income increases: Economic Survey report

New Delhi: Delhi’s Gross State Domestic Product (GSDP) at current prices during the fiscal year 2023-24 is projected to soar to Rs 11,07,746 crore, marking a notable growth of 9.17...

Sensex jumps more than 1,000 points on impressive GDP numbers

New Delhi: BSE Sensex jumped more than 1,000 points on Friday reacting to India’s impressive GDP numbers. Sensex was trading up by 1045.99 points up by 1.44 per cent at...

Read Previous

J&K govt sacks Bitta Karate’s wife, Syed Salahuddin’s son from service

Read Next

Operating licence of Pak’s ARY News revoked, paves way for permanent closure

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com