Loan Recovery Agents

The details of complaints regarding Direct Selling Agents/Recovery Agents received against the Scheduled Commercial Banks (SCBs) by the Offices of the Banking Ombudsman and disposed off during the last three years are as under:

Source : RBI The year represents the period from 01st July to 30th June.

The Reserve Bank of India (RBI) has issued instructions, vide its Master Circular dated July 01, 2011, on recovery of loans including vehicle loans and engagement and training of recovery agents, methods to be followed by them, as well as for avoiding adoption of uncivilized, unlawful and questionable behaviour of recovery agents during the process of recovery, as banks are responsible for the acts of their agents. These are applicable to all Scheduled Commercial Banks, Regional Rural Banks and even Primary Cooperative Banks. Such complaints are reviewed by RBI on a case to case basis. In order to mitigate the problems faced by the customers, banks and their agents are also required to follow the ‘Code of Bank’s Commitment to Customers’ issued by the Banking Codes and Standards Board of India (BCSBI) and Fair Practice Code for the Lenders. Further, non-observance of RBI guidelines on engagement of recovery agents by banks has been incorporated in the Banking Ombudsman Scheme as a ground of complaint with effect from February 03, 2009.

This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Lok Sabha today.

DSM/RS/ka

 (Release ID :92449)