RBI warns loans recovery agents of strict action against harassing customers
Mumbai, Aug 13 (KNN) The Reserve Bank of India (RBI) has said that it will take strict actions against loans recovery agents resorting to harassing or intimidating customers.
The Central Bank said that the ultimate responsibility for outsourced activities of its regulated entities vests with them.
“And they are therefore, responsible for the actions of their service providers, including recovery agents,” said the RBI.
The regulator said that agents are not following the instructions on the outsourcing of financial services received to them by their employers which are these banks and other financial institutions.
The circular will apply to all commercial banks, excluding payments banks; financial institutions like Exim Bank, NABARD, etc; non-banking financial companies; co-operative banks; and asset reconstruction companies.
The banks and other financial institutions covered in the circular have been advised to ensure they or their agents "do not resort to intimidation or harassment of any kind", including verbal or physical persecution.
The RBI has said to collect debt, they can't indulge in 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.
They can't make threatening or anonymous calls. Persistently calling the borrower or calling the borrower before 8:00 a.m. and after 7:00 p.m. for recovery of overdue loans, making false and misleading representations will also be viewed "strictly" by the central bank. (KNN Bureau)