Winning Bizness Desk

Mumbai. The Reserve Bank of India is coming up with strict rules to stop calls from bank agents from time to time 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 borrowers before 8 am in the morning and 7 pm in the evening. 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. The Reserve Bank of India has also said that even after outsourcing of any work by financial institutions, their responsibility does not end.

What draft says ?

In this draft, RBI has talked about making rules for direct selling agents, direct distribution agents and collection agents. This rule should apply to all three, public, private and NBFC. 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. 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.