FAIR PRACTICES CODE FOR DEBT COLLECTION

 

The Bank is committed to following fair practices especially with regard to collection and recovery of its dues from its borrowers (hereinafter referred to as "customer"). At the same time the Bank is also committed to follow fair practices in this regard to foster customer confidence and to retain the image of the Bank as an institution, which is fair in its dealings even with defaulters.

Preamble: This Code for Collection of Dues and Repossession of Security (CDRS) is a non-statutory code issued on voluntary basis. Bank adopts this Code for Collection of Dues and Repossession of Security. It lays down guidelines to have fairness and transparency in the collection, recovery and repossession of security.

Applicability: It applies to the Bank and the agents engaged by it for the purpose of collection, recovery and repossession of securities.

Dues Collection Policy Statement: Although the Bank is committed to collection /recovery of its dues and repossession of securities, the dignity of and respect for the customer is central to the Debt Collection Policy. Bank’s dues collection policy is built on courtesy, fair treatment and persuasion. The bank shall not follow policies, which are unduly coercive in collection of dues.

Security Repossession Policy Statement: The Bank's Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property. The Bank shall resort to repossession of the securities only when the collection/ recovery of dues is not forthcoming in spite of request made and the policy for repossession shall be in accordance with the terms and conditions of the loan documents and within the legal framework. The policy recognises fairness and transparency in repossession, valuation and realisation of securities.

General Guidelines: We will follow collection of dues and security repossession policy in consonance with the law. The policy will be displayed on our website and a copy of the same will be made available at our branch for perusal.All the members of the staff or any person authorised to represent the Bank in collection/recovery of dues and/or Repossession of Securities shall follow the guidelines as set out below:

  1. Whenever we give loans, we will explain to you the repayment schedule viz. amount, tenure and periodicity of repayment. However, if you do not adhere to the repayment schedule, a defined process in accordance with the laws of the land will be followed for recovery of dues.
  2. We will have a Board approved policy for Collection of Dues and Security Repossession as also appointment of Recovery Agents.
  3. All relevant laws, regulations, guidelines and conditions of approval, licensing or registration will be taken into account while appointing Recovery Agents.
  4. We will ensure that our Recovery Agents are properly trained to handle their responsibilities with care and sensitivity. We will also ensure that they do not exceed their brief.
  5. Our collection policy is built on courtesy, fair treatment and persuasion. We believe in fostering customer confidence and long-term relationship.
  6. We will provide you with all the information regarding your dues and will endeavour to give sufficient notice for payment of dues.
  7. We will have a system of checks before passing on a default case to recovery agencies so that you are not inconvenienced on account of lapses on our part.
  8. We will write to you when we initiate recovery proceedings against you and will inform you of the name of the recovery agency / agent, to whom your case has been assigned as also their address and telephone numbers.
  9. We will provide details of the recovery agency firms / companies engaged by us on our website.
  10. We will also make available, on request, details of the recovery agency firms / companies relevant to you at our branch.
  11. Our staff or any person authorized to represent us in collection of dues and / or security repossession will identify himself / herself and produce the authority letter issued by us and upon request show you his / her identity card issued by the bank or under authority of the bank.
  12. All the members of our staff or any person authorised to represent us in collection and / or security repossession would follow the guidelines set out below:
    • You would be contacted ordinarily at the place of your choice and in the absence of any specified place at the place of your residence and if unavailable at your residence, at the place of business / occupation.
    • Their identity and authority to represent us would be made known to you.
    • Your privacy would be respected.
    • Interaction with you would be in a civil manner.
    • Normally our representatives will contact you between 07.00 hrs and 19.00 hrs, unless the special circumstances of your Code of Bank’s Commitment to Customers – January 2018 business or occupation require otherwise.
    • Your requests to avoid calls at a particular time or at a particular place would be honoured as far as possible.
    • Time and number of calls and contents of conversation would be documented.
    • All assistance would be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.
    • During visits to your place for dues collection, decency and decorum would be maintained. Our officials / agents will not resort to intimidation or harassment of any kind, either verbal or physical against any person, including acts intended to humiliate publicly or intrude the privacy of your family members, referees and friends, making threatening and anonymous calls or making false and misleading representations. However, it is your responsibility to keep updating your contact details. In case the bank is unable to contact you at the details provided, the bank will access information available from public sources and approach your friends / relatives to trace you.
    • Inappropriate occasions such as bereavement in the family or other important family functions like marriages would be avoided for making calls / visits to collect dues.

We will investigate any complaint from you about unfair practices of our recovery agent