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RBI to make banks responsible for their recovery agencies

The Reserve Bank of India (RBI) is working on setting up guidelines that will make banks responsible for ensuring that their recovery agencies do not recruit recovery agents with a criminal background, following the complaints by loan borrowers and credit

Apnaloan.com Research Bureau

12 Sep 2007

The Reserve Bank of India (RBI) is working on setting up guidelines that will make banks responsible for ensuring that their recovery agencies do not recruit recovery agents with criminal background, following complaints by loan borrowers and apnapaisa.com/loan/credit-card-india/comparators.html" target="_blank" title="\"Click" here="" get="" to="" the="" credit="" card="" comparator\="">credit card holders.


According to the banking sources, once the new guidelines were in place, all banks will have to ensure that recovery agencies did a thorough background check of their employees, including police verification.


The proposed guidelines will also require each bank to publish the names of its recovery agencies, even on its website.