RBI’s introduces new ruling to curb misbehavior by loan recovery agents
In the last few years, reports of recovery agents harassing people for recovery of loans have become common. Recovery agents not only use abusive language from the customers to recover the money, but sometimes they also subject them to mental torture. RBI has decided to take strict action against this. Reserve Bank Governor Shaktikanta Das has said that loan recovery agents misbehave with people during recovery of money, it is absolutely not acceptable.
RBI strict on wrong behavior of recovery agents
RBI has issued a notification saying that the actions of recovery agents will not be tolerated at all. The regulator shall ensure that they or their agents do not engage in any intimidation or intimidation while recovering the loan. There should not be any incident of abuse or scuffle with any borrower, otherwise strict action will be taken and action will be taken against those who do so.
Banks have to ensure that there is no misbehavior with the borrowers
The central bank has also said that any bank or financial institution will have to ensure that its recovery agents do not misbehave with any borrower, their family or friends. Along with this, they will also have to ensure that their recovery agents do not intrude on the privacy of the borrower or their family members and friends. Strict action will be taken against the financial institutions and their recovery agents for making threatening messages and making such calls through mobile or social media to the borrowers.
Agents cannot call for recovery before 8 am and after 7 pm
RBI has said in its notification that recovery agents cannot even make repeated calls. The borrowers should not be called before 8 am and after 7 pm under any circumstances for recovery of loan. RBI has said that if any regulated entity violates this, it will be taken seriously and strict action will be taken.
RBI Governor Shaktikanta Das had said during a conference in June that loan recovery agents call borrowers at any time and misbehave with them. This is not acceptable at all. The Central Bank is taking this seriously and will not hesitate to deal with this problem strictly.
What should you do if recovery agents misbehave?
There are clear instructions from RBI for recovery of loans. According to the Bank, any violation of these instructions is not acceptable at all. If any public recovery agent abuse or mentally harass you then you should first complain to the bank. You can change the repayment terms of the loan by informing the bank about your situation. If the bank has not resolved your complaint within 30 days, you can complain to the Banking Ombudsman. Along with this, you can also complain to the central bank Reserve Bank of India.
RBI can impose penalty for not following the instructions
The Reserve Bank can reprimand that bank by issuing an order. In certain cases, RBI can also impose penalty on banks. Apart from this, the aggrieved debtor can also approach Lok Adalat and Consumer Court for justice.
