Click Here

Click Here


Recovery Agents engaged by banks – Draft guidelines


In view of the rise in the number of litigations against banks for engaging recovery agents in the recent past, RBI has felt that the adverse publicity could result in serious reputational risk for the banking sector as a whole. An urgent need has, therefore, arisen to review the policy, practice, procedure involved in the engagement of recovery agents by banks in India. Accordingly, banks are urged to follow prescribed specific considerations while engaging recovery agents.

Complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks’ recovery agents would be viewed seriously. Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban.

Similar supervisory action could be attracted when the High Courts or the Supreme Court pass strictures or impose penalties against any bank or its Directors/ Officers/ agents with regard to policy, practice and procedure related to the recovery process.

In this backdrop, the Reserve Bank proposes to issue operational guidelines for adoption by all commercial banks and has placed draft guidelines in public domain for feedback.

Soft Recovery Agents - A Matter of Ethics? ... Click here

CLICK FOR MORE FEATURES & STORIES




                

Click Here

Click Here

 

 

              Google
 
Web banknetindia.com

      Banking | Technology | Finance | Advertise | Terms of use | Disclaimer | Contact us
                         © Banknet India | All rights reserved worldwide.