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 calling hours According to the new circular borrowers should not be called for recovery before 8 AM and after 7 PM.
Ceasing harassment of borrowers relatives: Measures are to be taken to prevent threats intimidation, and misuse of private data even towards borrowers relatives and acquaintances.

Statement by the RBI Governer

RBI Governer Shaktikanta Das recently state that loan recovery agent engage in unacceptable behavior towards individuals, prompting the issuance of this circular.

Action on Customer Complaints by RBI

It's important to note that this circular applies to all commercial banks, non-banking financial companies, asset reconstruction companies, all India financial institutions, and all primary urban cooperative banks. RBI has emphasized that customer complaints will be taken seriously.