RBI Guidelines And Complaints
What are the RBI guidelines on recovery agents?
According to RBI regulations, banks' debt collection procedures should be built around the dignity and respect of clients. Bank policies that are excessively coercive in the pursuit of collections are not permissible. Recovery agents are mandated to follow these guidelines:
1) The customer would be contacted at his or her preferred location.
2) If requested, the bank representative should have an authorization letter on hand to show.
3)The bank would keep its customers' privacy a priority.
4) As far as feasible, the borrower's requests to avoid calls at a certain time or place would be honored.
5) All attempts should be made to resolve issues or differences connected with dues in a peaceful and amicable manner.
Can you complain to the RBI if you are being harassed or unathorized?
Yes, you can. The Reserve Bank of India has established a Banking Ombudsman to handle client complaints regarding bank services, including the following:
1) The bank's non-adherence to the fair practices code, as established by it;
2) Non-compliance with the Code of Bank's Commitments to Customers issued by the Banking Codes and Standards Board of India;
3) Non-observance of Reserve Bank guidelines on bank recovery agents
How does the Banking Ombudsman resolve the issue?
The Ombudsman will attempt to assist, conciliate, or mediate a dispute between a complainant and the regulated entity, if feasible.
The Ombudsman may take any action it sees fit, including having the complainant meet with representatives of a regulated entity to seek to resolve the problem through conciliation or mediation in the case of a complaint that is not resolved by facilitation.
The Ombudsman is authorized to award up to Rs 20 lakh in compensation. The Ombudsman can also compensate the complainant for not more than one lakh rupees for the time, expenses, and mental stress incurred.
How do you avoid this situation in the first place?
Ideally, you should take proactive action to resolve the situation so that harassment can be totally avoided. This can be done by:
1) Communicating openly and honestly with the bank about your financial situation.
2) Requesting that they consider a settlement at an amount that you can afford.
3) Taking assistance from a professional debt settlement and legal advisor.
Taking help from www.legalcounsellingindia.com
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