The Reserve Bank of India (RBI) has taken strict action to prevent harassment of borrowers by finance agents. When borrowers are unable to pay their loan installments, finance teams may resort to harsh recovery methods, such as visiting the borrower’s house and seizing the vehicle. This type of harassment can cause emotional distress for borrowers and their families. To address this issue, the RBI has implemented guidelines that prohibit humiliation and harsh recovery methods. The guidelines include limitations on calls and visits and prohibit threatening messages or calls to borrowers or their relatives. The RBI has made it clear that any agent found violating these rules will face severe consequences. The RBI has also provided a complaint website where borrowers can register their complaints against such harassment. The RBI’s action against the harassment of borrowers by finance agents is a welcome move towards protecting the interests of borrowers.
RBI Implements Strict Guidelines to Prevent Harassment by Loan Recovery Agents
The Reserve Bank of India (RBI) has taken a strong stance against harassment of borrowers by finance agents. Borrowers who opt for finance options to purchase vehicles may face harsh methods of recovery, such as house visits and vehicle seizure, if they are unable to pay their loan installments. This kind of harassment can cause emotional distress for borrowers and their families.
To address this issue, the RBI has implemented new guidelines that prohibit humiliation and harsh recovery methods. The guidelines include limitations on calls and visits and prohibit threatening messages or calls to borrowers or their relatives.
Under the new guidelines, finance agents are not allowed to publicly humiliate borrowers for failing to pay their loan installments. Agents are now only allowed to call borrowers between 8 am to 7 pm, and cannot visit borrowers without prior notice. They must inform the borrower at least 24 hours in advance about the visit. Moreover, the agents cannot engage in any harsh methods towards loan recovery and must follow legal procedures when recovering the loan.
The RBI has made it clear that any agent found violating these rules will face severe consequences. The RBI has also asked borrowers to immediately contact the police if they face harassment by finance agents. The RBI has provided a complaint website where borrowers can register their complaints against such harassment.
The RBI’s action against the harassment of borrowers by finance agents is a welcome move towards protecting the interests of borrowers. The RBI has assured borrowers that it will take immediate action against any agent found to be in violation of these rules. These guidelines will go a long way in ensuring that borrowers are treated with dignity and respect during the loan recovery process.
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