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?
Deadline: December 30, 2007
I’ll publish my thoughts here within a week.