News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

Home  » Business » RBI warns ban on recovery agents

RBI warns ban on recovery agents

Source: PTI
April 24, 2008 19:58 IST
Get Rediff News in your Inbox:
The Reserve Bank of India on Thursday asked banks to take full responsibility for their recovery agents to avert disputes and litigations arising out of high-handed loan recovery practices and warned of a ban on their deployment if found engaged in abusive practices.

"The banks are advised to ensure that contract with the recovery agents do not induce adoption of uncivilised, unlawful or questionable behaviour or recovery process," the apex bank said in its guidelines on engagement of such agents.

It cautioned banks that the rise in the number of disputes and litigations related to recovery practices in the recent past and the consequent adverse publicity could result in "serious reputation risks" for the entire banking sector.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!