new Delhi : Reserve Bank of India ( reserve bank of india ) Advised the Asset Reconstruction Company to avoid rude methods for loan recovery. rbi Has asked these companies to adopt ‘Fair Practices Code’. The code prohibits the use of uncivil and illegal methods of recovery. Not only this, there is also talk of transparency and fairness in the methods of recovery under this code.
Information will be public The Reserve Bank of India (RBI) has advised ARC companies to make public all things related to loan recovery. That is, FPC should be put in public domain for the information of stakeholders. Apart from this, the ARC should follow the Board approved policy on management fees, expenses, if any, and incentives. This policy should be transparent. It should be ensured that the management fees are reasonable and proportionate to the financial transaction. The RBI states that a notice must be issued with conditions for recovery before beginning any process of recovery.
With this, the RBI has instructed that the loan recovery agents should give training to the companies for the work of recovery so that they can fulfill their responsibilities with sensitivity. Recovery agents should also be sensitive regarding aspects such as calling hours, confidentiality of information of customers, etc.