Loan Recovery Rules: Now no recovery agent will be able to harass customers by calling them from time to time for EMI recovery. RBI has made strict rules for this.
RBI Rules for Loan Recovery: From time to time, Reserve Bank of India is coming up with strict rules to stop the calls of bank agents for loan recovery. According to the rules proposed by RBI, even if a customer does not pay the loan EMI on time, the loan recovery agent cannot call the borrower before 8 am in the morning and 7 pm in the evening.
Outsourcing does not reduce the responsibility of financial institutions
According to the report published in Economic Times, the Reserve Bank of India has also said that even after outsourcing of any work by financial institutions, their responsibility does not end. He is equally responsible towards the customers. Along with this, in this draft, RBI has talked about making rules for Direct Sales Agents, Direct Marketing Agents and Recovery Agents. This rule is applicable to all three, public, private and NBFCs.
Should be. Along with this, RBI has said that recovery agents should be trained as to when and how to communicate with the customer on call or message while recovering the loan.
Cannot threaten debtors
Along with this, to ensure the rights of the customers, RBI has also directed the financial institutions to explain to their recovery agents that they cannot resort to threats or harassment for loan recovery. Along with this, recovery agents cannot humiliate the borrowers. Financial institutions should keep in mind that the privacy of borrowers should be fully respected at the time of loan recovery.
Financial institutions should avoid outsourcing important tasks – RBI
Along with this, the Reserve Bank has also advised non-banking financial companies and banks to avoid outsourcing important policy management tasks like KYC rules, loan approval etc. to other companies. RBI has said these things in its Draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services.
