MUMBAI, Jun 18 (NNN-PTI) – India’s central bank chief, Shaktikanta Das, yesterday, warned lenders not to use harsh tactics against borrowers through their agents, to recover outstanding dues.
“We received complaints of customers being contacted by recovery agents at odd hours, even past midnight. There are also complaints of recovery agents using foul language,” said the Reserve Bank of India governor, at a conference in Mumbai.
Such kind of actions by recovery agents are unacceptable and pose a reputational risk for the financial entities themselves, Das said.
His remarks came, after media reports highlighted allegations of suicide by borrowers, due to harsh recovery practices by the agents.
“We have taken serious note of such instances and will not hesitate to take stringent action, in cases where regulated entities are involved. Such complaints against unregulated entities will have to be taken up with appropriate law enforcement agencies,” Das said.
Following the suicide of several borrowers, the Mumbai police had set up a 10-member team, in May, to investigate the cases.– NNN-PTI
