RBI has strict rules for the recovery agents of banks and NBFCs. Recently, RBI has imposed a penalty of Rs 1 crore on HDFC Bank for violating these rules. It is very important for customers to know about these rules of RBI
RBI has imposed a penalty of Rs 1 crore on HDFC Bank. A major reason for this is the violation of rules in the use of recovery agents. Due to this, the issue of misbehavior of recovery agents with customers in loan recovery has again come into the headlines. RBI found in its investigation that the recovery agents did not follow the prescribed rules. They contacted the customers before and after the prescribed time. This means that they called the customers after 7 pm and before 7 am.
No permission to misbehave with customer despite default on EMI
RBI believes that while talking to customers, the bank recovery agents will have to keep in mind the set rules. They will also have to respect the customer’s privacy. Even if the customer has defaulted on the loan or delayed in paying the EMI, the bank will have to follow the set rules. Experts say that the central bank’s rules in this regard are comprehensive and clear. It is important for people to know about them properly. Only then will the arbitrariness of the recovery agents of banks or financial institutions be stopped.
Talk to the recovery agent only after checking his ID
First of all, it is important for you to understand how to protect yourself from becoming a victim of fake recovery agents. For this, it is important that before starting a conversation about loan dues etc., you should ask for the recovery agent’s ID. On getting the ID, you have to check carefully whether it has been issued by the bank or NBFC or not. When you are sure that the recovery agent is from the same bank from which you have taken the loan, then only start talking to him.
The recovery agent cannot share the customer’s personal information
It is mandatory for the recovery agent to keep your loan related information confidential. He cannot share your information with anyone. He cannot talk about your loan in public or with any third party. If you feel that the recovery agent is violating these rules, then you should complain to the bank or NBFC. You can also take legal action against the recovery agent.
Recovery agent can be contacted only between 7 AM to 7 PM
According to RBI rules, the recovery agent has to be polite while talking to the customer. They have to take care of your personal space and they can contact you only between 7 am and 7 pm. If the recovery agent does not follow these rules, then you can take legal action against him. For this you will have to present evidence. You can record his phone call. You can save his SMS.
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Defaulted on your loan? You need not panic
1. Negotiate with the bank about the loan
You can tell the bank the reason for defaulting on the loan. If your financial condition is not good then it is necessary to tell the bank about it. The bank will understand your problem and try to find a solution. This will give the bank confidence that you intend to repay the loan. This will prevent the recovery agent from misbehaving with you.
2. Apply for loan restructuring
You can apply to the bank for restructuring your loan. This will make the terms of loan repayment easier for you. You will get more time to repay the loan. This will prevent you from facing problems like default. You will repay the loan gradually. But, before signing the restructuring proposal, it is important to see and understand it properly.
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