Cannot Use Harsh Methods Or Foul Language To Recover Loans: RBI Governor

RBI Governor Shaktikanta Das has warned of stringent action against recovery agents

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that loan recovery agents undertaking harsh methods like calling up at odd hours and using foul language with customers is unacceptable and will be addressed seriously with the central bank not hesitating to take stringent action.

During his address at the FE Modern BFSI Summit, Mr Das said that such practices have been found in unregulated and to some extent with regulated financial entities also.

“RBI will address this issue seriously in terms of regulated entities, while if we receive complaints regarding unregulated entities, we pass them on to law enforcement agencies. However we will not hesitate to take stringent action against such kind of complaints,” the RBI Governor said. 

He further said that “banks have been sensitised about such actions and though they take action, everyday is a new challenge and we urge all lenders and banks to pay special attention to this area as customer interface has to be under certain parameters”.