Loan recovery rules: What are the loan recovery rules? Know what is RBI’s guideline?

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Loan recovery rules: What are the loan recovery rules? Know what is RBI's guideline?
Loan recovery rules: What are the loan recovery rules? Know what is RBI's guideline?

The Reserve Bank of India (RBI) has made the rules strict for loan recovery agents. What are these rules and what are the rights of the borrower? Read this report to know.

Hazaribagh of Jharkhand. A farmer took a loan from a private finance company . Bought tractor. It was expected that if the tractor comes, then happiness will come. But where did the farmer know that the recovery agents would come after the loan ? Agents who have nothing to do with his pain. They only know how to recover. Even if they have to take someone’s life for this. And exactly the same happened. The loan recovery agents tried to take the tractor forcibly. The farmer’s daughter stopped, protested, then the tractor mounted on her.

Killed two months pregnant. In this case the police will take their action but could the loan recovery agent really take that tractor? What were the rights of the farmer? And did he get that right? Today we will tell you the complete math of loan recovery as well as explain every legal aspect related to it.

What is the rule of Reserve Bank

The Reserve Bank of India (RBI) has made the rules strict for loan recovery agents. RBI has issued new instructions for the agents recovering the outstanding loans, saying that they cannot call the borrowers before 8 am and after 7 pm. Issuing a notification, RBI said that banks, non-bank financial companies ie NBFCs and Asset Reconstruction Companies (ARC) should ensure that its instructions related to recovery of loans are followed properly.

RBI said that the borrowers should not be harassed in any way, they should not be provoked, any kind of inappropriate message should not be sent to the borrowers. Also, do not threaten, do not call from unknown numbers. Not only this, recovery agents cannot make any kind of call to any borrower before 8 am and after 7 pm. It is not that for the first time RBI has issued guidelines on this issue. Even before this, RBI has been issuing guidelines related to debt recovery, but recently one after the other incidents have come to the fore. In view of these, these new and very strict guidelines have been issued.

What are the rights of the borrower

Now you know what are the legal rights of the borrower? First of all, understand that if a recovery agent is committing excesses, then take the help of the police. No recovery agent can confiscate anyone’s property. The agent’s job is only to prepare the borrower for payment. Under no circumstances can the agent harass the borrower physically, mentally or in any other manner. Not only this, the borrower needs to know the phone number and address of the recovery agent. Loan Agent Recovery Agent’s job is to call borrowers, collect payments from them. Loan agents can tell borrowers the terms and conditions of the loan, add late fees but not bother anyone.