Business Loans India : RBI directs to Banks to reform their recovery methods
From the last few months, the RBI was constantly criticised for failing to rein in errant banks.RBI Governor’s words were loud and clear keep your recovery agents under control or face a temporary or permanent ban on using outsourced services.
According to RBI Governor, Dr Y V Reddy , “If there are repeated complaints in particular, that means they are not doing a proper job and need to be kept in check. And if banks are not prepared to do it, then I have to do it.”
Now RBI is taking strict action against the abusive practices of recovery methods banks have been adopting. RBI is considering on imposing a ban on recovery agents. RBI released a statement that the regulator would consider imposing a ban on recovery agents, if it is found that they are resorting to abusive practices to recover loan.