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The apex financial body of the country, Reserve Bank of India (RBI) on Thursday, April 24, 2008, issued certain guidelines for banks’ recovery agents, failing to adhere to which may result in banning the operations of the concerned bank. It may further lead to more stringent actions or penalties imposed on the directors, officers and agents of the bank. The introduction of the final norms for the recovery agents is owing to a rise in the number of litigations and disputes against banks for engaging recovery agents in the recent past, which has put at stake the reputation of the entire banking sector.
Under the RBI guidelines, the banks are expected to post the details of recovery agents firms and companies engaged by the respective bank on their websites. The banks also have to ensure that the borrower gets the details of recovery agents firms, while forwarding default cases to the recovery agency. The recovery agents are expected not to indulge in uncivilized, questionable and unlawful behavior during the recovery process.
The bank recovery agents, as per the RBI guidelines, will now have to compulsory undergo 100 hrs training and obtain a certificate from the Indian Institute of Banking and Finance. This will ensure that the agents are properly trained to handle their responsibilities with sensitivity.
