Debt Recovery Agents are part of the
financial space all over the world. The Lenders turn too specialized teams for
recovery of their Non-Performing Assets.
Over the years, due to various
factors, Indian Debt Recovery Agents become very aggressive. Reserve Bank of
India was flooded with customer complaints on the rude behavior by the Debt
Recovery Agents.
To bring in professionalism into the
Debt Recovery process, Reserve Bank of India, in paragraph 172 and 173 of the
mid-term review of the Annual Policy for the year 2007-08, announced the
guidelines for Debt Recovery Agents engaged by Banks.
Reserve Bank of India has advised
the Indian Banks' Association to formulate, in consultation with Indian
Institute of Banking and Finance (IIBF), a certificate course for Debt Recovery
Agents who have undergone 100 / 50 hours of training.
The existing recovery agents had to within
a period of one year had to undergo the above training and obtain the
certificate from IIBF.
Going ahead, the service providers engaged
by Banks / NBFCs should employ only such personnel who have undergone the above
training and obtained the certificate for the purpose of recovery from IIBF.
The course has
been designed through a consultative process with senior executives of Indian
Banks Association (IBA) and banks.
Despite
RBI guidelines, significant number of banks’ recovery agents harasses
defaulters the age-old way.
Adhikrut Jabti Evam Vasuli Managed by TEAM OF YOUNG WOMENS came
into operation in the year 1998
2 comments:
DEBT PERIOD DIFFERS FROM INDUSTRY TO INDUSTRY. THIS TERM PERIOD IS STIPULATED BY FINANCIAL INSTITUTES. AND ALSO BY PRACTICE OR CUSTOM IN THE INDUSTRY.
THIS SHOULD BE PUT IN PLACE, AS A RULE.
FOR INSTANCE, THE RULE IN PHARMACEUICALS IS 60 DAYS, WHILE IN PRACTICE THEY GIVE A 90 DAY PERIOD.
SIMILARLY IT IS DIFFERENT PERIOD FOR MINERALS INDUSTRY.
IN MY PROJECT WORK, I WAS ASKED TO PROVE THAT THE COLLECTION WAS ACTUALLY DONE IN THAT TIME PERIOD.
JUST LIKE THE INFRASTRUCTURE INDUSTRY HAS NEGOTIATED WITH THE RBI, A TIME LAG OF 25 YEARS FOR REPAYMENT, OTHER INDUSTRIES TOO CAN LOBBY FOR A REVENUE COLLECTION PERIOD, AS SUITS THEM IN COMMON.
THIS IS BECAUSE THE NPA CLASSIFICATION IS RULED BY FINACLE, AN INFOSYS SOFTWARE, WHICH ALLOWS NO CORRECTION FOR THE RETRIEVAL PERIOD, BUT A UNIFORM ONE OF 3 MONTHS.
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