RBI gave big relief to those who could not repay the bank loan, issued strict instructions to the banks RBI – Guidelines are issued from time to time by the Reserve Bank of India in the interest of bank customers. One such guideline has been issued by RBI. This will provide great relief to those customers who due to some reason are not able to pay the loan EMI on time. Actually, the Reserve Bank was receiving complaints for a long time.
Reserve Bank of India (RBI) will show strictness against harassing customers. The country’s central bank has proposed that recovery agents will never be able to harass loan taking customers by calling them. According to this proposal, there is a ban on calling recovery agents after 7 pm and before 8 am.
Apart from this, Credit Information Companies (CICs) will have to bear the brunt of delay in updating credit information of customers. Customers will have to pay compensation at the rate of Rs 100 per day for delay in updating or correcting credit information.
The Reserve Bank of India (RBI) said on Thursday that credit information companies have been given six months’ time. During this period, Credit Institutions (CIs) and CICs will have to develop necessary systems to implement a compensation framework for delays in updating credit information.
In the circular, the Reserve Bank said, if the complaint of the complainant is not resolved within a period of 30 calendar days from the initial date of filing the complaint with the CI/CIC, then a penalty of Rs 100 per calendar day will be charged to the complainant. Will get compensation.
According to the circular, in case of refusal to pay compensation, the complainant can approach the RBI Ombudsman. Let us tell you that Credit Information Bureau (India) Limited (CIBIL), Equifax, Experian and CRIF Highmark are some of the major credit information companies in India.
Apart from the provision of compensation, RBI has also prepared a proposal to stop recovery agents from making calls before 8 am and after 7 pm. Proposing strict rules for loan recovery, RBI said, financial institutions and their recovery agents will not be able to call loan customers before 8 am and after 7 pm to recover overdue loans.
The ‘Draft Master Direction on Risk Management and Code of Conduct’ states that regulated entities (REs) such as banks and non-banking finance companies (NBFCs) should not outsource key management functions. This includes important decisions like policy formulation and compliance with KYC norms and approval of loans.
The draft states that there should be a board-approved code of conduct for direct selling agents (DSAs)/direct marketing agents (DMAs)/recovery agents (applicable to commercial banks, co-operative banks and NBFCs). This should ensure that recovery agents are appropriately trained to deal with sensitivity.
The recovery agent should be quite sensitive about how to specifically solicit customers, call timings, confidentiality of customer information and how to talk to the correct terms and conditions of the products.
The Reserve Bank has made it clear that the recovery agents will not resort to any form of threat or harassment, whether verbal or physical, against any person in their loan recovery efforts. It also includes intent to publicly humiliate or interfere with the privacy of family members, debtors/their guarantors.
The RBI draft states that inappropriate messages should not be sent to loan customers on mobile or through social media. Threatening and anonymous calls should not be made for loan recovery. As per the proposal, the borrower/guarantor should not make false and misleading representations by making frequent calls.