RBI Provides Great Convenience to Loan Takers, Orders Issued to Banks
The Reserve Bank of India (RBI) has tightened regulations for loan recovery agents issuing a circular for all banks and financial companies in the country. Following this directive all borrowers are pleased with the move. RBI has clearly stated that entities falling within its regulatory purview must ensure that collection agents do not harass borrowers. Furthermore, any abusive language or physical coercion towards borrowers is strictly prohibited. A circular has been issued by the bank in this regard. Misuse of Data to be Curtailed The RBI has issued a circular to all banks and financial institutions, instructing them to prevent threats intimidation and misuse of private data against loan borrowers. Measures will also be taken to curb harassment of borrowers relatives and acquaintances. Highlights of the Circular: Preventing defamation on social media platforms Banks are instructed to prevent the sending of objectionable messages and defamation on social media platforms. Fixed...