RBI New Guidelines: RBI has issued a new guideline regarding loan recovery. Under which, if a bank harasses customers in case of non-payment of loan money, then customers can complain about it to the police, as well as ask for penalty.
Every person takes loan from the bank for other needs including house, car, marriage and education. Since there is uncertainty in life, sometimes situations come such that there is difficulty in repaying the loan. However, it is also necessary to repay the loan taken from the bank or other financial institution and the bank officials constantly contact the customers.
But it has been seen many times that the recovery agents of the bank misbehave in the name of loan recovery. In such a situation, it is important that every customer who takes a loan should know about his rights.
If the bank recovery agent misbehaves with you, then do not be afraid, rather raise your voice against it. RBI has made some rules on this matter. Under these, if a bank intimidates customers in case of non-payment of loan money, then customers can complain about it to the police, as well as demand a penalty.
When and how does the loan recovery process start?
In case of non-payment of two consecutive loan EMIs, the bank first sends a reminder to you. At the same time, the bank sends you a legal notice for non-payment of three consecutive installments of the home loan. Despite the warning, if you haven’t paid the EMI in full, then you are declared a defaulter by the bank. After this, the bank starts efforts to recover the loan from the customer.
Loan recovery is done in two ways-
When a person becomes unable to repay the loan, the bank starts the process of recovery. There are two methods for this. In this, the first is the non-judicial route and the second is the judicial process. However, during recovery, the RBI guidelines state that the legal rights and obligations of the customers should be respected.
What are the guidelines of RBI?
If you have taken a loan from your bank and you have failed to repay it, then the bank can contact you for its recovery, but no bank officer or recovery agent has the right to misbehave with any customer. Let us know what are the guidelines of RBI in this regard…
- The details of the collection agency should be informed to the customers in advance.
- While meeting the defaulter, the agent will also have to carry the authorization letter and a copy of the bank’s notice.
- If a complaint has been lodged by the borrower, banks are not permitted to send recovery agents in the matter until the said complaint is resolved.
- The bank should also ensure that the complaints of the borrowers are properly resolved in relation to the recovery process
- Some rules and regulations have been set regarding loan recovery from the customers, which are as follows.
Where to complain?
The Supreme Court has considered the wrong methods of loan recovery like threatening and harassing the customer as a crime. If any recovery agent intimidates and threatens you regarding the loan, then you should complain about it to the bank as well as to the police station. Not being able to repay the loan installment comes under the ambit of civil dispute. In such a situation, the bank or any of its recovery agents cannot act arbitrarily with the defaulter.
The bank’s officer or recovery agent can call the defaulter only between 7 in the morning and 7 in the evening and the time of coming home will also be the same. If the bank representative breaks these rules, then you can call and complain about it.
