RBI asks banks to furnish details about recovery agents

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Mumbai, Nov 30 (UNI) The Reserve Bank of India (RBI), in the draft guidelines issued today for banks engaging recovery agents, asked banks to inform borrowers the details of recovery agents engaged for the purpose while forwarding default cases to recovery agents.

''The details should include their telephone numbers, and other details. The recovery agents should call the borrowers only from the telephone numbers notified to the borrower,'' the Apex Bank said in the guidelines posted on its website for public comments.

The RBI further said that complaints received by it regarding abusive practices followed by a bank's recovery agents would invite serious supervisory disapproval.

The Reserve Bank would consider imposing a temporary ban (or even a permanent ban in case of persistent abusive practices) for engaging recovery agents on those banks where strictures have been passed or penalties have been imposed by a High Court or the Supreme Court or against its directors/officers with regard to the abusive practices followed by their recovery agents.

The Central Bank also asked the banks to ensure that ''contracts with the recovery agents do not induce adoption of uncivilized, unlawful and questionable behaviour or recovery process.'' UNI

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