For Public Comment: Recovery Agents Engaged By Banks — Draft Guidelines

by Vinaya HS on December 4, 2007

in Finance

In view of the rise in the number of litigations against banks in the recent past for engaging recovery agents, it is felt that the adverse publicity might result in serious reputation risk not only for the bank concerned but also for the banking sector as a whole. An urgent need has, therefore, arisen to review the policy, practice and procedure involved in engagement of recovery agents by banks in India. In this backdrop, the Reserve Bank proposes to issue operational guidelines for adoption by all commercial banks. The issue of extending similar guidelines to NBFCs, as appropriate, is being considered separately.

What should you as a citizen of India do?

  1. Read the guidelines on loan recovery practices.

  1. Email your comments/thoughts to the Reserve Bank of India.

Deadline: December 30, 2007

I’ll publish my thoughts here within a week.

Further reading:

  1. Awareness Fridays: Guidelines for Customer Service in Indian Banks
  2. For Public Comment: Report of the Study Group on Migration from Paper Based Funds Movement to Electronic Funds Transfer
  3. Know Your Rights: Banks Should Compulsorily Furnish A Copy Of The Loan Agreement
  4. Problem: Where Can I Get The List Of Indian Financial System Codes (IFSC) For Indian Banks?
  5. Problem: Where Can I Get The List Of MICR Codes For Indian Banks?

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