Reserve Bank of India focuses on
Mahindra & Mahindra Financial Services Ltd Physical Repossession process
The
trigger for this blog post is Reserve Bank of India’s Press Release dt Sept22,
2022 @ https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54414
The
title of the above press release is: Action against Mahindra & Mahindra
Financial Services Ltd., under Section 45L(1)(b) of the Reserve Bank of India
Act, 1934
The
press release gist is:
The
Reserve Bank of India has today, in exercise of its powers under section
45L(1)(b) of the Reserve Bank of India Act, 1934, directed Mahindra &
Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying
out any recovery or repossession activity through outsourcing arrangements,
till further orders.
At the
same time, Reserve Bank of India made it clear that the said NBFC may continue
to carry out recovery or repossession activities, through its own employees.
Reserve
Bank of India action is based on certain material supervisory concerns observed
by RBI in the said NBFC, with regard to the management of its outsourcing
activities.
My
only wish is that ‘Mahindra & Mahindra Financial Services Ltd’ onboards
BBPS with live connectivity to it’s borrower accounts.
Q:
What is meant by live connectivity?
Ans:
Live connectivity means the EMI’s due amount in the borrowers accounts in the company’s
IT Systems should be picked up and displayed in the BBPS “pay Emi” field.
There
are a number of tools available in the Indian market for recovery of overdue loans.
My
focus is only on BBPS as a tool to reassure borrowers of their overdue amount, and
collection transparency.
The
borrowers should be able to see their pending EMIs amount in any BBPS enabled
Application and be able to pay digitally or via Cash at any BBPS Collection
Point.
No
physical cash should be collected by the finance company’s employees or agents towards
EMI repayments.
Additional Reading:
RBI directs Mahindra Finance to
stop outsourcing its recovery activity through agents @ https://www.livemint.com/companies/news/rbi-directs-mahindra-finance-to-stop-outsourcing-its-recovery-activity-through-agents-11663854933869.html
Pregnant woman crushed to death
under tractor wheels by recovery agents, RBI bars Mahindra Finance from loan
recovery through 3rd party agents @ https://zeenews.india.com/personal-finance/pregnant-woman-crushed-to-death-under-wheels-of-tractor-by-recovery-agents-rbi-bars-mahindra-finance-from-loan-recovery-through-3rd-party-agents-2513327.html
Mahindra Finance share price
tanks 10% after RBI action - what investors should know @ https://www.zeebiz.com/market-news/news-mahindra-finance-share-price-tanks-10-following-rbi-action-what-investors-should-know-200254
Mahindra Finance says number of
repossessed vehicles will go down after RBI order @ https://www.businesstoday.in/latest/corporate/story/mahindra-finance-expects-number-of-repossessed-vehicles-to-go-down-after-rbi-order-347997-2022-09-23
Why RBI Directed Mahindra &
Mahindra Finance To Stop Recoveries Through Third-Party Agents @
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original copyright holders only
Disclaimer: These are my personal
views only. The bottom line is Safe ePayments. Nothing More – Nothing Less.
