Harsh loan recovery to end soon? RBI guv Das says will take ‘serious action’ against errant entities

RBI Governor Shaktikanta Das said that harsh recovery methods used by a few lenders is a serious area of concern for the central bank. He mentioned how certain regulated, as well as unregulated entities use unacceptable recovery methods without having adequate checks and controls over their recovery agents. “We have received complaints of customers being contacted by recovery agents at odd hours, even past midnight. There are also complaints of recovery agents using foul language,” Das said in his inaugural address at the FE Modern BFSI Summit today. He stressed that such kind of actions by recovery agents are “unacceptable” and pose reputational risk for financial entities themselves. The RBI governor said, “We have taken serious note of such instances and will not hesitate to action against such errant regulated entities.” Das asked all lenders, banks to pay special attention to this problem. The RBI has also set up a committee to review customer services standards in RBI-regulated entities.